Why Royal Caribbean Stock Rose 6.5% on Friday

Shares of Royal Caribbean Cruises (NYSE: RCL) climbed more than 6% on May 15, following news of the company's debt offering earlier in the week.

Royal Caribbean raised $3.32 billion in senior secured notes on May 13. The much-needed cash comes at a steep cost. Royal Caribbean will pay a 10.875% interest rate on $1 billion in debt due on June 1, 2023 and 11.5% on $2.32 billion in debt due on June 1, 2025. The notes will be secured in part by 28 of Royal Caribbean's cruise ships. 

The cruise-line operator intends to use the proceeds to repay its $2.35 billion senior secured term loan, as well as general corporate purposes.

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Source Fool.com