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Royal Caribbean International

Investment evaluation

The images below show the real trades of some of our clients or the balances of the property accounts of some of our clients, while IMPERIUM FINANCE s.r.o. does not guarantee that the same or higher appreciation will result from the trading of every investor. Investing is always associated with risks, which the investor should first familiarize himself with, e.g. through the document "Investment services, investment instruments and risks related to them", which is available  here . Please also note that the evaluations below are based on gross performance. In order to obtain a net return, it is necessary to take into account the effect of all costs associated with investing, see, for example, a sample calculation of business costs, which is available here . The net investment return may also be affected by the tax regime, which depends on the individual circumstances of each investor and may change in the future. If the investment instrument listed below is denominated in a foreign currency, the valuation presented also refers to this currency and the return on the investment in the investor's currency may be affected by exchange rate fluctuations.
Snímek obrazovky 2021-05-31 v 9.52.08.pn
RCL

Royal Caribbean

Business was booming before Covid-19 and ocean liners were often in demand as an experiential summer holiday. 

The CEO of Royal Caribbean stated in an interview that the company is experiencing very strong bookings for 2021 and the end of 2020.  As part of the pandemic, the company's business was stopped and the company increased its capital by issuing new bonds (it did not need to be financed by the state) .  From our point of view, a question mark hangs over future profitability, whether it will return to 30%, 50%, 80% of the pre-Covid-19 value. How to correctly price shares is therefore complicated at the moment, and they are therefore particularly suitable for speculative trading.  However, from the creditor's point of view, in our opinion, the bankruptcy of the company, and therefore the risk for bondholders, is completely "off the table".

Complete information

Issuer
Royal Caribbean Cruises Ltd.
The name of the issue
Royal Caribbean Cruises, 3.7% 15Mar2028
Currency
US dollar $
Emission volume
500,000,000 USD

The face value of the bond

1000 USD

Indicative market price

600 USD

Discount

360 USD
Coupon from face value
3.70% p.a
Coupon payout frequency

Due date

Quarterly payment
15/03/2028

 100% liquidity

Yes
Minimum volume
$100,000

Yield to Maturity 

9.37% pa - before taking into account all costs

Preferred scenario

42.06% pa - before taking into account all costs
Rating
BB
Hierarchy of debt
Senior uninsured
You can find the prospectus for the bonds here:
3.700% Senior Notes Due 2028 - Prospectus

Management and outlook of the company

~

RCL

Bond summary

Given that the bond was trading at $1030 before Covid-19, when Fed rates were 2% and now at 0%, we expect the bond price to return to above $1000 within 1 year , once the market realizes that the bonds are not at risk and this imbalance is arbitrated. The bond rating is still BB (Sazka BB-).

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