NEW YORK (Bloomberg) ? Royal Caribbean Cruises Ltd., the world?s second-largest cruise operator, plans to buy back about 4.1 million shares to redeem debt. The stock rose 4.7 percent, the biggest gain in four months.

The repurchased shares comprise the amount of stock the company needs to fill requests to redeem a convertible bond due in 2021, Miami-based Royal Caribbean said yesterday.

Royal Caribbean also said it will redeem an additional $543 million in debt, with financing for the transaction coming from bonds or bank loans. The company?s stock has tumbled 21 percent this year through yesterday as high oil prices cut into profit.

?People are encouraged that the company is showing faith in the stock? by buying its own shares and redeeming debt, said Robert LaFleur, an analyst at Susquehanna Financial Group. ?All that said, the fundamental environment in the cruise industry is not great.?

Shares of Royal Caribbean rose $1.67 to $37.36 at 3.14 p.m. in New York Stock Exchange composite trading.

Royal Caribbean said it probably won?t substantially increase its debt level to finance the redemptions. Chief financial officer Luis Leon said in the statement the repurchases will help the company simplify its balance sheet.

?At the end of the day, the company?s going to have the same amount of debt, the same amount of shares and same EPS,? said LaFleur, who has a ?neutral? rating on Royal Caribbean shares and doesn?t own any.