JWCA advises Royal Caribbean Group on its upsized $1.15 billion convertible transaction to refinance existing convertible notes

August 2022 | read press release

Transaction Background

Royal Caribbean Group (“RCG” or “the Company”) successfully raised $1.15bn in the convertible market at attractive terms (6.00% coupon and 40.0% conversion premium)

RCG’s objective included:

  • To opportunistically repurchase the existing convertible notes in a manner that is net neutral to outstanding shares and share equivalents

RCG engaged J. Wood Capital Advisors to assist in the structuring, negotiation, documentation and execution of the transaction

JWCA provided extensive analysis on deal structuring and related items, including:

  • Convertible structuring

  • Repurchase analysis and execution strategy

  • Shareholder messaging

JWCA provided advice, support and analysis throughout the execution process

Results

RCG was well received by investors:

  • The transaction was oversubscribed and upsized by $100 million

  • 6.00% coupon and 40% conversion premium

The Company used the proceeds from the sale of the Convertible Notes to repurchase $350 million aggregate principal amount of its 2.875% convertible senior notes due November 15, 2023 and $800 million aggregate principal amount of its 4.25% convertible senior notes due June 15, 2023