Rare BlerkOne Posted October 18, 2022 #1 Share Posted October 18, 2022 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 1 Link to comment Share on other sites More sharing options...
crystalspin Posted October 18, 2022 #2 Share Posted October 18, 2022 Up 81-cents after 17-cents after 3-cents... Link to comment Share on other sites More sharing options...
Rare BlerkOne Posted October 18, 2022 Author #3 Share Posted October 18, 2022 Just now, crystalspin said: Up 81-cents after 17-cents after 3-cents... Much better than RCL did today, by percentage. 1 Link to comment Share on other sites More sharing options...
lostsoulcruiser Posted October 18, 2022 #4 Share Posted October 18, 2022 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? Link to comment Share on other sites More sharing options...
Rare BlerkOne Posted October 18, 2022 Author #5 Share Posted October 18, 2022 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. Link to comment Share on other sites More sharing options...
bucfan2 Posted October 18, 2022 #6 Share Posted October 18, 2022 2 hours ago, BlerkOne said: Much better than RCL did today, by percentage. Be sure not to look back 365 days. Link to comment Share on other sites More sharing options...
Rare BlerkOne Posted October 18, 2022 Author #7 Share Posted October 18, 2022 Just now, bucfan2 said: Be sure not to look back 365 days. 1 Link to comment Share on other sites More sharing options...
bucfan2 Posted October 19, 2022 #8 Share Posted October 19, 2022 28 minutes ago, BlerkOne said: Go team go. 1 Link to comment Share on other sites More sharing options...
Rare BlerkOne Posted October 19, 2022 Author #9 Share Posted October 19, 2022 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. 1 Link to comment Share on other sites More sharing options...
Rare IntrepidFromDC Posted October 19, 2022 #10 Share Posted October 19, 2022 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. 3 Link to comment Share on other sites More sharing options...
Purvis1231 Posted October 19, 2022 #11 Share Posted October 19, 2022 Based on the latest financial disclosure, Carnival Corp has a probability of bankruptcy of 53% according to experts. 1 Link to comment Share on other sites More sharing options...
cruisingguy007 Posted October 19, 2022 #12 Share Posted October 19, 2022 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 Link to comment Share on other sites More sharing options...
Rare BermudaBound2014 Posted October 19, 2022 #13 Share Posted October 19, 2022 (edited) 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 3 Link to comment Share on other sites More sharing options...
cruisingguy007 Posted October 19, 2022 #14 Share Posted October 19, 2022 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. Link to comment Share on other sites More sharing options...
Rare BermudaBound2014 Posted October 19, 2022 #15 Share Posted October 19, 2022 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). Link to comment Share on other sites More sharing options...
Rare BlerkOne Posted October 19, 2022 Author #16 Share Posted October 19, 2022 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. 4 Link to comment Share on other sites More sharing options...
Rare BermudaBound2014 Posted October 19, 2022 #17 Share Posted October 19, 2022 At 10.28% interest…… with a call date of 2025….. oh boy 3 Link to comment Share on other sites More sharing options...
Qextor Posted October 19, 2022 #18 Share Posted October 19, 2022 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. Link to comment Share on other sites More sharing options...
Rare BermudaBound2014 Posted October 19, 2022 #19 Share Posted October 19, 2022 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. 1 Link to comment Share on other sites More sharing options...
cruisingguy007 Posted October 19, 2022 #20 Share Posted October 19, 2022 (edited) 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 Link to comment Share on other sites More sharing options...
Rare BlerkOne Posted October 19, 2022 Author #21 Share Posted October 19, 2022 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. 2 Link to comment Share on other sites More sharing options...
Rare BermudaBound2014 Posted October 19, 2022 #22 Share Posted October 19, 2022 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 1 Link to comment Share on other sites More sharing options...
Rare BlerkOne Posted October 19, 2022 Author #23 Share Posted October 19, 2022 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? Link to comment Share on other sites More sharing options...
Rare BermudaBound2014 Posted October 19, 2022 #24 Share Posted October 19, 2022 10 minutes ago, BlerkOne said: The desperate times are mostly behind them. Did you type that with a straight face?? 🙂 2 5 Link to comment Share on other sites More sharing options...
crystalspin Posted October 19, 2022 #25 Share Posted October 19, 2022 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!!! 2 1 Link to comment Share on other sites More sharing options...
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