Royal Caribbean completes $1.25 billion notes offering

Royal Caribbean Group said it completed the sale of $1.25 billion in notes on August 20. The notes carry a 5.55% coupon and mature on January 20, 2034. The offering was conducted under a shelf registration filed on February 29, 2024.

According to the company, proceeds will first be used for floating-rate term loans. Any remaining funds are intended to repay or refinance other debt. Royal Caribbean reported $6.9 billion in liquidity as of June 30 and added $250 million to its revolving credit facility in July. Its scheduled debt maturities include $2.7 billion in 2027 and $3.4 billion in 2028.

Royal Caribbean separately reported second-quarter adjusted earnings of $4.21 per share on July 28. The company attributed the performance above its guidance to stronger last-minute demand, lower costs and improved joint-venture results. Management increased its full-year adjusted earnings guidance to between $17.73 and $17.87 per share, representing projected growth of 14%.

During the second quarter, the company returned $404 million to shareholders through dividends and another $199 million through share repurchases. For the third quarter, Royal Caribbean forecast net yields at roughly the same level as in 2025 while expecting capacity to increase 8.5%. Management also said prolonged geopolitical activity had modestly affected bookings on selected itineraries and that the impact was included in its guidance.