Carnival Corp plans to sell $ 2 billion in unsecured asset debt for the first time since the Covid-19 slowdown.
The owner of 87 New York and London listed ships valued private offers of $ 1.45 billion and â¬ 500 million ($ 593 million) in 7.625% senior unsecured notes due in 2026.
The amount of banknotes to be issued has been increased to these amounts from the previously announced â¬ 1 billion and â¬ 300 million, Carnival said.
The offering is expected to close on November 25 and will pay interest of 7.625% semi-annually on March 1 and September 1 of each year, starting March 1, 2021.
The Notes will not be guaranteed and will mature on March 1, 2026.
Earlier this year, Carnival hit a guaranteed debt limit after selling nearly $ 9 billion in bonds and asset-backed loans.
The article continues under the ad
Carnival said Thursday it has priced a registered direct offering of 10.4 million common shares at $ 17.59 each due in 2023. It plans to use the funds to buy back $ 90.8 million in debt. principal of bondholders.
He also said he closed an offer of 49.2 million shares at $ 18.05 each to certain holders of senior 5.75% convertible bonds due 2023. He will use this proceeds to buy back $ 428 million from bond debt.
He plans to close an additional 8.2 million shares as part of the offering on Friday and use the funds from that transaction to buy back $ 71.5 million in convertible bonds.
Following these repurchases, Carnival will have $ 628 million in convertible bonds outstanding.
In mid-July, the Arnold Donald-led company hit a self-imposed 25% loan-to-value (LTV) limit on senior banknotes by putting $ 7 billion against $ 28 billion in assets in guarantee.
The cruise giant also hit a 33% LTV ratio cap as of Aug. 14 on second-priority tickets by issuing $ 9.3 billion of that debt.
In early April, Miami-based Carnival closed a $ 4 billion private offering of 11.5% senior senior bonds due 2023, backed by 86 ships valued at $ 28.6 billion. .
On July 20, he closed private offers of $ 775 million and â¬ 425 million ($ 503 million) of covered bonds due 2026, then priced a private offer of $ 900 million. guaranteed debt maturing in 2027.
Carnival, however, sold six of the guarantee vessels, bringing the value of the guarantee, now backed by 80 vessels, to $ 28 billion as of July 31.
A month earlier, he had taken out a $ 1.86 billion term loan and a â¬ 800 million term loan to help pay off the 2027 bills.
Pay your debts with your debts
Amid all the debt shuffle, Carnival drafted a provision that triggers the automatic release of liens on all 80 ships backed by secured debt if 25% of the secured debt reaches the value of the tangible assets.
Carnival, which did not respond to calls, actually approached that threshold, with secured debt standing at $ 10.6 billion, while 25% of the value of tangible assets stands at $ 12.4 billion. of dollars.
Carnival will likely pursue more debt after delaying the return of North American brands Carnival Cruise Line and Princess Cruises to sail amid U.S. rules for cruise ships in U.S. waters.
On October 30, the US Centers for Disease Control and Prevention (CDC) lifted a US shipping ban, but then issued a “framework for conditional navigation” that requires mock travel.