Royal Caribbean sells $1.25 billion in senior debt

On August 20, Royal Caribbean Group completed the sale of $1.25 billion in senior notes due January 20, 2034. The notes carry a fixed coupon of 5.55%. Proceeds are designated primarily to repay floating-rate term loans, with remaining funds allocated to repay or refinance other debt under a shelf registration originally filed on February 29, 2024.

The transaction replaces variable-rate obligations as upcoming maturities approach, including $2.7 billion due in 2027 and $3.4 billion due in 2028. As of June 30, Royal Caribbean reported $6.9 billion in liquidity, and it added $250 million to its revolving credit facility in July. Total net interest expense for 2026 is still projected between $980 million and $990 million, while capital expenditures are expected to reach roughly $4.7 billion this year.

On July 28, the company reported second-quarter adjusted earnings of $4.21 per share, down from $4.38 a year earlier but ahead of internal forecasts. Full-year adjusted earnings guidance was raised to a range of $17.73 to $17.87 per share, representing 14% growth. Second-quarter shareholder returns included $404 million in dividends and $199 million in share repurchases, while net cruise costs excluding fuel per passenger day rose 4.4%.

For the third quarter, net yields are projected to remain roughly flat compared with 2025, with expected revenue growth of 8% driven primarily by an 8.5% capacity increase rather than higher pricing. Short interest stood at about 6.00% of the float, while hedge fund holders rose to 56 from 53 in the prior quarter. As of September 18, Royal Caribbean traded at a forward price-to-earnings multiple of 12.12.