Royal Caribbean announces pricing of $1 billion in stock, convertible note offerings; stock edges up

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Shares of Royal Caribbean Group edged up 0.4% in premarket trading Wednesday, after tumbling 13.2% in the previous session, as the cruise operator disclosed the pricing of the total of $1 billion in stock and convertible notes offerings. The company said late Tuesday that its $500 million public stock offering, with the company selling 8,333,333 shares at $60.00 each, which is 1.0% below Tuesday’s closing price of $60.61. Meanwhile, the $500 million convertible senior notes due 2023 will pay interest 2.875%. In comparison, the yield on 3-year Treasury notes was 0.18% on Tuesday. The company said it is using some of the proceeds of the convertible notes offering to repay senior notes with a lower rate of 2.650%, but due this year. Royal Caribbean’s stock has tumbled 54.6% year to date through Tuesday, while the S&P 500 has gained 8.7%.
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