Royal Caribbean raised $3. Royal Caribbean will pay a 10.875%interest rate on $1 billion in debt due on June 1, 2023 and 11.5%on $2.
The cruise-line operator means to utilize the proceeds to repay its $2.35 billion senior protected term loan, along with basic corporate purposes.
Royal Caribbean’s $3.3 billion financial obligation sale might keep it cruising well into the future. Image source: Getty Images.
Regardless of the high interest costs, financiers appear to be breathing a sigh of relief that Royal Caribbean had the ability to raise more than $3 billion in fresh capital. With its ships docked due to the coronavirus-related sailing limitations, Royal Caribbean is bleeding money.
Financiers are hoping that this debt offering will give the beleaguered company a chance to make it through enough time to resume normal sailing operations and maybe see the end to the COVID-19 crisis.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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Joe Tenebruso has no position in any of the stocks discussed.
The Motley Fool has no position in any of the stocks pointed out. The Motley Fool has a disclosure policy