Royal Caribbean Cruises said May 31 it
would buy back 4.1 million shares in order to redeem all of its
outstanding Liquid Yield Option Notes, due 2021, worth about $543
million, and its outstanding zero coupon convertible notes, also
due 2021, which the cruise line expects holders to convert into
Royal Caribbean stock prior to the redemption.
expects that the moves will have no material effect on earnings per
share. The company expects to complete the transactions by years
end, depending on market conditions.
In a statement,
Royal Caribbean executive vice president and CFO, Luis Leon, said
We view this as an opportune time to simplify our balance sheet and
eliminate potential future dilution while maintaining our financial
To contact the
reporter who wrote this article, send e-mail to Johanna Jainchill
at [email protected].