Carnival to issue $1.25 billion in unsecured bonds to institutions

[BlerkOne]

https://www.prnewswire.com/news-releases/carnival-corporation--plc-announces-offering-of-1-25-billion-senior-priority-notes-due-2028-to-be-issued-by-carnival-holdings-bermuda-limited-for-refinancing-301651991.html

 

for debt repayment

[crystalspin]

Up 81-cents after 17-cents after 3-cents...

[BlerkOne]

Just now, crystalspin said:

Up 81-cents after 17-cents after 3-cents...

Much better than RCL did today, by percentage.

[lostsoulcruiser]

In connection with the offering of the Senior Priority Notes, the Company and its subsidiaries will contribute 12 unencumbered vessels to the Issuer, with each of these vessels continuing to be operated under one of the Company's, Carnival plc's or one of their subsidiaries' brands.

 

Which vessels?

[BlerkOne]

19 minutes ago, lostsoulcruiser said:

In connection with the offering of the Senior Priority Notes, the Company and its subsidiaries will contribute 12 unencumbered vessels to the Issuer, with each of these vessels continuing to be operated under one of the Company's, Carnival plc's or one of their subsidiaries' brands.

 

Which vessels?

It doesn't really matter, but I would guess 12 ships that haven't already been pledged as collateral. The new bonds are unsecured.

[bucfan2]

2 hours ago, BlerkOne said:

Much better than RCL did today, by percentage.

Be sure not to look back 365 days.

[BlerkOne]

Just now, bucfan2 said:

Be sure not to look back 365 days.

[bucfan2]

28 minutes ago, BlerkOne said:

Go team go. 

[BlerkOne]

MIAMI, Oct. 18, 2022 /PRNewswire/ -- Carnival Corporation &  plc (NYSE/LSE: CCL; NYSE: CUK) today announced that Carnival Holdings (Bermuda) Limited  (the "Issuer"), a subsidiary of Carnival Corporation  (the "Company"), has priced the private offering of $2.03 billion  aggregate principal amount of 10.375% Senior Priority Notes due 2028 (the "Senior Priority Notes"). The aggregate principal amount of Senior Priority Notes to be issued was increased to $2.03 billion  from $1.25 billion  due to strong investor demand.

[IntrepidFromDC]

As a shareholder, I give them credit for taking additional painful steps to try to avoid bankruptcy.

 

As a cruiser, I love Carnival and just hope the old Warren Buffet mantra "buy what you know" works out.

 

I bought a bunch in the $8's during covid but I sure bought a bunch in the $20's and $30's at previous dips.  

[Purvis1231]

Based on the latest financial disclosure, Carnival Corp has a probability of bankruptcy of 53% according to experts.

[cruisingguy007]

4 minutes ago, Purvis1231 said:

Based on the latest financial disclosure, Carnival Corp has a probability of bankruptcy of 53% according to experts.

 

Interesting read here, 51% according to this evaluation:

 

https://www.macroaxis.com/invest/ratio/CCL/Probability-Of-Bankruptcy

[BermudaBound2014]

4 hours ago, crystalspin said:

Up 81-cents after 17-cents after 3-cents...

Ccl had debt due before the end of the year. The market reacted positively today because this offering kicks the can down the road. In other words, they won’t be filing for restructure next month, this is another chance to try to ride out the storm. 
 

Nothing good can come from needing to borrow money just to make an interest payment on current debt.
 

It’s sad :(.

 

 

Edited October 19, 2022 by BermudaBound2014

[cruisingguy007]

33 minutes ago, IntrepidFromDC said:

As a shareholder, I give them credit for taking additional painful steps to try to avoid bankruptcy.

 

As a cruiser, I love Carnival and just hope the old Warren Buffet mantra "buy what you know" works out.

 

I bought a bunch in the $8's during covid but I sure bought a bunch in the $20's and $30's at previous dips.  

 

Price isn't everything, you have to account for the huge increase in shares that water down the rest. You can end up paying more for less if you only factor in price and not apples to apples. 

[BermudaBound2014]

1 hour ago, BlerkOne said:

MIAMI, Oct. 18, 2022 /PRNewswire/ -- Carnival Corporation &  plc (NYSE/LSE: CCL; NYSE: CUK) today announced that Carnival Holdings (Bermuda) Limited  (the "Issuer"), a subsidiary of Carnival Corporation  (the "Company"), has priced the private offering of $2.03 billion  aggregate principal amount of 10.375% Senior Priority Notes due 2028 (the "Senior Priority Notes"). The aggregate principal amount of Senior Priority Notes to be issued was increased to $2.03 billion  from $1.25 billion  due to strong investor demand.

that is VERY Interesting. I want to know if they actually gave ownership of 12 ships to the investors (to be run by CCL). 

[BlerkOne]

6 minutes ago, cruisingguy007 said:

 

Price isn't everything, you have to account for the huge increase in shares that water down the rest. You can end up paying more for less if you only factor in price and not apples to apples. 

CARNIVAL IS ISSUING BONDS, NOT SHARES.

[BermudaBound2014]

At 10.28% interest……

 

with a call date of 2025…..

 

oh boy 

[Qextor]

2 minutes ago, BermudaBound2014 said:

At 10.28% interest……

Yes - given the interest investors have shown, they probably could've gotten away with 8-9% interest, and had less to pay back.  But yes - it's a lot to have to pay back, even with 2-3 years to do it.

[BermudaBound2014]

8 minutes ago, Qextor said:

Yes - given the interest investors have shown, they probably could've gotten away with 8-9% interest, and had less to pay back.  But yes - it's a lot to have to pay back, even with 2-3 years to do it.

It’s sad watching this slow bleed.
 

I get it, anything to kick the can down the road and hope the industry can turn around in the meantime, but this offer looks pretty desperate to me, as most offers are when your back is against the wall. 
 

 

[cruisingguy007]

1 hour ago, BlerkOne said:

CARNIVAL IS ISSUING BONDS, NOT SHARES.

 

They issued plenty of shares previously as well. I was referencing Intrepid with regard to share price.  

 

https://www.cruiseindustrynews.com/cruise-news/27886-carnival-to-issue-1-billion-of-new-stock.html

Edited October 19, 2022 by cruisingguy007

[BlerkOne]

1 hour ago, BermudaBound2014 said:

At 10.28% interest……

 

with a call date of 2025…..

 

oh boy 

Do you understand what a call date is? It is to Carnival's benefit.

 

Expect treasuries to go to 5% or higher.

[BermudaBound2014]

5 minutes ago, BlerkOne said:

Do you understand what a call date is? It is to Carnival's benefit.

 

Expect treasuries to go to 5% or higher.

I’m with you on treasuries.

 

I also think this was a necessary  move for carnival. But, Without knowing more details I hesitate to call it brilliant. I wonder how many lawyers it took to draft this?
 

They are kicking the can in hopes of better financial times. Unfortunately; I don’t see better fiscal times ahead for any of the lines. They are all borrowing money to pay debt. While necessary, at 10.28% interest it’s a desperate move.

 

 

 

https://finance.yahoo.com/news/carnival-corporation-plc-announces-upsizing-230100788.html

[BlerkOne]

6 minutes ago, BermudaBound2014 said:

I’m with you on treasuries.

 

I also think this was a necessary  move for carnival. But, Without knowing more details I hesitate to call it brilliant. I wonder how many lawyers it took to draft this?
 

They are kicking the can in hopes of better financial times. Unfortunately; I don’t see better fiscal times ahead for any of the lines. They are all borrowing money to pay debt. While necessary, at 10.28% interest it’s a desperate move.

 

 

 

https://finance.yahoo.com/news/carnival-corporation-plc-announces-upsizing-230100788.html

The desperate times are mostly behind them. 

 

RCL and the rest will be forced to do similar, but are lagging Carnival. Will there be any money left for those who wait?

[BermudaBound2014]

10 minutes ago, BlerkOne said:

The desperate times are mostly behind them. 

Did you type that with a straight face?? 🙂 

 

 

[crystalspin]

2 hours ago, BermudaBound2014 said:

Ccl had debt due before the end of the year. The market reacted positively today because this offering kicks the can down the road. In other words, they won’t be filing for restructure next month, this is another chance to try to ride out the storm. 

I'm no financial wiz, but this is how I was perceiving the news. It's all such a house-of-cards!!!