Royal Caribbean Raises $2.5 Billion in Senior Notes Offering

Royal Caribbean Group, one of the world's largest cruise operators, has announced the pricing of a $2.5 billion senior unsecured notes offering. According to a press release, the company has priced $1.25 billion in 4.750% senior unsecured notes due 2033 and another $1.25 billion in senior unsecured notes due 2038. The new financing will provide Royal Caribbean with additional liquidity as the cruise industry continues to recover from the impacts of the COVID-19 pandemic. 'This offering further strengthens our financial position and flexibility as we continue to ramp up our operations,' said Jason T. Liberty, president and CEO of Royal Caribbean Group. The 2033 notes were priced at 99.462% of the principal amount, while the 2038 notes were priced at 99.010% of the principal amount. The offering is expected to close on February 17, 2026, subject to customary closing conditions, according to the company. Royal Caribbean's move to raise $2.5 billion in new debt financing comes as the cruise industry navigates a challenging operating environment. The pandemic forced cruise lines to suspend sailings for extended periods, leading to significant financial losses. While the industry has begun to recover as travel restrictions ease, cruise operators continue to face headwinds such as higher fuel costs and supply chain disruptions. By securing this new long-term financing, Royal Caribbean is positioning itself to weather the ongoing market volatility and invest in fleet renewal and expansion as demand for cruises is expected to rebound in the coming years. The additional liquidity will also provide the company with greater financial flexibility to manage its operations and debt obligations.