Royal Caribbean Sells $1.5 Billion of High-Grade Bonds

Royal Caribbean Cruises Ltd. sold $1.5 billion of bonds as Fitch Ratings upgraded the cruise operator’s credit rating, kicking off a busy week with another seven borrowers tapping the investment-grade market Monday.

Royal Caribbean’s bond, maturing in 10 years, yields 125 basis points above Treasuries, after initially discussing around 160 basis points, according to a person with knowledge of the matter. Proceeds will finance the upcoming delivery of the company’s 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.