Carnival to Issue $1.5bn Loan to Refinance Bonds Issued in 2020

The world’s largest cruise operator Carnival Corp is planning to refinance its relatively costly dollar bonds issued during the peak of the pandemic in April last year via a $1.5bn loan. As per Bloomberg, the company began marketing the loan to investors at the 3-month Libor (3mL) + 3.25%. Proceeds from the loan will likely be used to refinance its 11.5% 2023s issued at 99 in April 2020 that have rallied since then to currently trade at 112.88 yielding 2.59%. While the original amount issued was $4bn, the company bought back about $2bn worth of the 2023s using proceeds from its $2.4bn 4% bonds due 2028 issued in late July this year. The new 2028s have inched higher since issuance at 100 to 101.125 currently to yield 3.8%.

For the full story, click here