Miami cruise liner Carnival Corp. & Plc. to raise $1.26 billion in bond offerings



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Miami cruise liner Carnival Corp. & Plc. to raise $1.26 billion in bond offerings

Carnival Corp. & Plc., the Miami-based British-American cruise ship operator had told in a statement on Wednesday that the world’s largest cruise liner, whose NYSE-listed shares’ prices had gained as much as 64.50 per cent since mid-March despite a global-scale stagnation in tourism and leisure activities, had been working out a $1.26 billion in bond offerings, as the pandemic-hit cruise ship operator appeared to be fleshing up war chests ahead of a likely second wave of pandemic outbreak in the United States.

In point of fact, latest statement from the Miami-based cruise line operator comes over the heels of an earlier announcement from the British-American company that said the cruise ship operator had been raising fresh liquidities since mid-March through several options including leveraging parts of its fleet alongside private islands and had secured over $10 billion alongside another $2 billion in form of revolving credit.

Aside from that, the cruise ship operator was also quoted saying last week that the Miami-based world’s No. 1 cruise ship operator ahead of Royal Caribbean, had enough liquidity to weather a zero-revenue scenario for more than a year.

Carnival Corp.’s new bond offering to pay an annual coupon over 10 per cent

Meanwhile, adding that the $1.26 billion which Carnival Corp. had been looking to raise in form of debts would be matured by 2026, the company was quoted saying at its Wednesday statement that the offering, which was scheduled to close by July 20, had been split into two tranches, one of which would include $775 million with an annual coupon of 10.5 per cent and the remaining $425 million would be issued with an annual coupon of 10.125 per cent.

In factuality, business sectors related to tourism and leisure activities had borne the steepest brunt from the ongoing pandemic outbreak, while a number of cruise liners alongside aviation industry Goliaths were forced to raise billions of dollars to see through the pandemic-led inertia by leveraging parts of their fleets and other assets such as airport slots and private islands.