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Royal Caribbean Group acts to attract more funding

Royal Caribbean Group is seeking to raise further funds as global cruises remain at a standstill amid the Covid-19 pandemic.

A public offering of $500 million of shares of common stock in the company has been released.

Underwriters will be granted an option to purchase up to $75 million of additional shares.

“The company expects to use the net proceeds from the offering for general corporate purposes,” the group said.

Royal Caribbean Group is also seeking $500 million in debt security via a private offering of senior convertible notes due in 2023.

The company intends to grant the initial purchasers an option to purchase up to an additional $75 million principal amount of convertible notes, according to a statement from the parent company of Royal Caribbean International, Celebrity Cruises, Azamara and Silversea.

The group posted a second quarter loss of $1.6 billion in August following a first quarter loss of $.16 billion in May.

It subsequently secured agreement for a $700 million loan, with the potential to rise to $1 billion, from US bank Morgan Stanley.

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