Carnival Boosts Bond Sale After 12% Yield Attracts $17 Billion
- Offering size increased to $4 billion, share sale reduced
- Pandemic-stricken industries have been seeking financing
The Carnival Corp. Panorama cruise ship sits docked in Long Beach, California, on March 7.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Cruise line operator Carnival Corp. sold a larger-than-expected $4 billion of new secured bonds as part of an effort to raise over $6 billion from debt and stock sales to shore up liquidity amid turmoil caused by the coronavirus pandemic.
It increased the three-year bond offering from the $3 billion originally targeted and cut the coupon to 11.5% from about 12.5% earlier, as order books swelled to around $17 billion, according to people familiar with the matter. The debt priced at a discount of 99 cents on the dollar, giving it a yield of just under 12%, said the people, who asked not to be identified discussing a private matter.