Author Topic: Hey, Mr. Bankster can you spare Carnival a dime. No make that BILLIONS in IOUs.  (Read 38 times)

Offline Host Mike

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Carnival Corp. secures rescue financing package

"The biggest slice of the financing came through a $4 billion senior secured bond offering that gives investors an 11.5% coupon, yielding near 12% yield on debt that matures in 2023. Initially, the company pitched a smaller $3 billion senior bond offering at coupon of about 12.5%, but was able to get slightly more favorable terms from creditors even as Carnival and others battle a worldwide slump in travel due to the coronavirus pandemic. The Baa3/BBB rated Carnival CCL, -9.43% also planned to raise $1.75 billion in senior convertible notes due 2023 and $1.25 billion of new equity. The new financing is expected to bridge the cruise liner with liquidity until about November 2020, according to analysts at CreditSights, who underscored in a note Wednesday that Carnival said it now needs about $1 billion worth of liquidity per month. The company already drew a $3 billion revolver in recent weeks and pledged 86 vessels of its 105 ship fleet as collateral for the senior bonds, as well as other company assets. Shares of Carnival on Wednesday plunged 23%, as the cruise operator followed up its worst-ever quarterly performance with its biggest one-day drop in two weeks."