Is Carnival Borrowing Again?

[4hunters]

Does this mean that they’re borrowing more money this soon after their recent offerings?  I don’t claim to be a savvy investor, just have my decent 401k, so maybe I’m missing something:  https://apple.news/ABx68I5OyTC-uI2bdOtXjnQ

[4hunters]

Please educate me if I’m misunderstanding this article. Thanks 👍🏻

[4hunters]

https://www.prnewswire.com/news-releases/carnival-corporation--plc-announces-pricing-of-900-million-second-priority-senior-secured-notes-due-2027-301112697.html

 

Hopefully this works. 

Edited August 14, 2020 by 4hunters

[john91498]

Yeah, they are.

[EscapeFromConnecticut]

No worries - Donald & Duffy earn Skymiles for every extra dollar on Carnival's Amex card.

 

Truly, the thing about racking up gigundo debt during a devastating recession & massive industrywide contraction is: what could possibly go wrong?

[BlerkOne]

5 minutes ago, EscapeFromConnecticut said:

No worries - Donald & Duffy earn Skymiles for every extra dollar on Carnival's Amex card.

 

Truly, the thing about racking up gigundo debt during a devastating recession & massive industrywide contraction is: what could possibly go wrong?

 

 

Borrowing at lower interest rates to pay off higher interest rate loans makes sense to me.

 

[Moviela]

As a public company Carnival LLC and PLC must disclose to anyone who might invest in the company details of a material change in the companies financial position.

This offering gives the company pocket money to restart suspended operations. These 6 year notes will reward the investor a fat 9 7/8%.

 

The catch is these are only for members of the Billionaire Boys Club. The notes will not be registered and can only be bought by well healed institutional investors. A rather select domestic few, and while offered internationally, no American investor may subscribe.

 

I would expect that all the notes have been sold prior to the announcement, and it appears as a matter of record only.