Carnival Corp has offered $3.5bn more in debt to help make principal payments on billions of dollars in loans attained to survive a pandemic that has halted business since March.
The Arnold Donald-led owner of 87 ships on Wednesday priced the private offering of the 5.75% senior unsecured notes due 2027, expected to close on 16 February.
The notes will pay interest semi-annually on 1 March and 1 September of each year, beginning on 1 September 2021, at a rate of 5.75% per year.
They will be guaranteed by Carnival and certain subsidiaries that own or operate those ships that guarantee certain first-priority secured and second-priority indebtedness.
The money will also be used for general corporate purposes that include financing or refinancing of expenses related to equipment and other assets.
New York-listed Carnival is reported to be in early discussions with investors over a potential $600m junk bond issue.
It is said to be testing investor appetite for an unsecured deal that may mature in five to seven years, Bloomberg reported.
If it proceeds, it will be the fifth dollar bond sale the company has carried out during the Covid-19 pandemic to shore up its balance sheet.
Carnival has taken advantage of wide-open credit markets to borrow its way through the pandemic, which has put the entire cruise industry on hold for almost a year.
All four bond offerings since April have been used for general corporate purposes, Bloomberg said, padding the company’s balance sheet as it burns billions of dollars in cash.
Since March, Carnival has raised $19bn in capital through debt and equity and borrowing money to stay afloat.
