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Royal Caribbean Boosts Junk-Bond Sale to $1 Billion, Cuts Yield

  • Final yield on notes cut to 5.375% from initial high-5% talk
  • Company is chipping further away at its $21 billion debt load
Updated on

Royal Caribbean Cruises Ltd. raised $1 billion through a junk-bond sale Tuesday as the company took advantage of a recovery in travel companies’ stocks and bonds to ease its huge debt load.

The cruise operator, which has about $21 billion of debt, will use proceeds to repay maturities due this year, according to a statement Tuesday. The deal follows offerings in 2021 that helped reduce its overall borrowing costs by paying off billions of dollars of debt issued earlier in the pandemic at expensive rates to help get it through travel shutdowns.