Royal Caribbean Cruises has sold $1bn in bonds, two weeks after it sold $3.32bn worth at higher interest rates as it tries to stay solvent with a fleet laid up by the Covid-19 pandemic.
The Richard Fain-led owner of 62 ships on Thursday sold the three-year bonds, which are backed by seven ships, at 9.125%, according to Bloomberg.
The New York-listed company is also selling another $1bn in convertible notes due 2023 at 5% to 5.5% interest with a 20% to 25% conversion premium, Bloomberg reported.
Royal Caribbean expects to use the combined net proceeds from the $2bn in combined debt offerings for general corporate purposes, including paying off $18bn in debt.
The company on 19 May closed a private offering of $1bn in secured notes at 10.875% interest and another $2.32bn at 11.5% interest.
Royal Caribbean used the net proceeds from the note offering to repay a $2.35n, 364-day senior secured term loan agreement with Morgan Stanley.
It plans to put the rest of the money toward day-to-day business costs and repaying debt.
Royal Caribbean and its peers Carnival Corp and Norwegian Cruise Line Holdings have taken on unprecedented levels of debt over the past three months to survive a no-revenue scenario brought on by the pandemic.
Two out of the "Big Three" cruise majors saw gains on Wall Street Thursday.
Carnival shares jumped 7.1% to $18.48, while Norwegian's stock gained 9% to $19.59. Royal Caribbean shares slipped less than 1% to $57.69.
