Is It Finally Safe to Buy Royal Caribbean Stock?
Royal Caribbean (NYSE: RCL) has been very active in the capital markets to make sure it has enough cash to survive the coronavirus pandemic. The company plans to raise two concurrent $1 billion offerings.
The first will be senior guaranteed notes due in 2023 that pay 9.125% interest, while the second offering will be convertible senior notes due in 2023. The shares are convertible at a 25% premium.
"The convertible notes will be convertible at the holder's option in certain circumstances. Upon conversion, the company may satisfy its conversion obligation by paying or delivering, at its election, as applicable, cash, shares of its common stock, or a combination of cash and shares of its common stock," according to a press release.
Source Fool.com