Royal Caribbean is offering $3.3 billion in senior bonds
The shares of Royal Carribean Cruises Ltd (NYSE:RCL) are down 5.8% to trade at $34.21 at last check, amid news that the company is offering $3.3 billion in senior bonds, backed by 28 vessels and two private islands for collateral. The cruise line plans to use the notes to repay a $2.35 billion loan as well as manage other aspects of the company plagued by the global pandemic.
Struggling to rebound from its mid-March bear gap that coincided with the broad-market selloff and culminated in a nine-year low of $19.25 on March 18, the equity is down 74.4% year-to-date. Turned away multiple times by the $50 region, the equity has been trading sideways as of late, with pressure at the descending 50-day moving average.
Options volume is slightly elevated for RCL today. So far, 18,000 puts and 21,000 calls have crossed the tape. Most popular looks to be the May 30- and 33.50-strike puts, with positions being opened at the latter.
Analysts are leaning bullish on RCL, with seven out of 12 sporting a "strong buy" rating. Meanwhile, the consensus 12-month price target of $79.08 is a staggering 130% premium to current levels.