Carnival Cruise Lines Seeks to Borrow $3 Billion, Raise $3 Billion More
- Cruise line eyes $3 billion of secured bonds in dollars, euros
- Thawing credit markets open up to companies hurt by Covid-19
The Carnival Corp. Grand Princess cruise ship sails toward the Port of Oakland in San Francisco, California, on March 9.
Photographer: David Paul Morris/BloombergCruise line operator Carnival Corp. is turning to all corners of the capital markets to raise at least $6 billion of cash, the biggest test yet of investor willingness to finance industries ravaged by the coronavirus outbreak.
The company is tapping bond investors on both sides of the Atlantic with the sale of at least $3 billion of notes in U.S. dollars and euros. The new bonds will be secured by a first-priority claim on the company’s assets such as its vessels and intellectual property and mature in three years. The dollar-denominated portion is being marketed with a coupon of about 12.5% and the entire offering could be increased to $4 billion, according to people with knowledge of the transaction.