Royal Caribbean Cruises Ltd. is selling $1.5 billion of bonds as Fitch Ratings upgraded the cruise operator’s credit rating citing strength in the industry, kicking off a busy week with another seven borrowers tapping the investment-grade market Monday.
Royal Caribbean’s bond, maturing in 10 years, will yield 125 basis points above Treasuries, after initially discussing around 160 basis points percentage points, according to a person with knowledge of the matter. Proceeds will finance the upcoming delivery of Celebrity Xcel ship, redeem or refinance a portion of the company’s 2026 senior notes, and fund general corporate purposes, said the person, who asked not to be identified as the details are private.