A spate of junk-rated issuers including Royal Caribbean Cruises and SeaWorld kicked off debt sales Monday as borrowers seek to take advantage of a strong tone in the credit market.
At least nine new leveraged loan sales hit the market in the US Monday alongside five high-yield bond offerings, according to data compiled by Bloomberg.
Royal Caribbean is selling $1.5 billion of junk bonds as the cruise line operator looks to refinance existing debt, according to a statement Monday. SeaWorld, meanwhile, launched a $1.5 billion loan repricing, according to a person with knowledge of the matter.
After eight straight weeks of gains for US junk bonds, Wall Street banks are also selling new offerings for Enova International, Permian Resources and contractor Amentum, while prepping potential high-yield bond deals for Walgreens Boots Alliance Inc. and Newell Brands that could hit the market as soon as this week.
Citigroup Inc, JPMorgan Chase & Co. and Sumitomo Mitsui are leading the 8.5-year Royal Caribbean offering, according to a person with knowledge of the matter, who asked not to be identified discussing a private transaction. Proceeds from the deal will refinance all of the company’s notes maturing in 2029 that pay an interest rate of 9.25%, and some of the notes maturing the same year with an interest rate of 8.25%.
This article was provided by Bloomberg News.