Carnival Corp has put itself into further debt to stay afloat during the unprecedented Covid-19 downturn.
The Arnold Donald-led cruise behemoth has priced a private offering at $775m in senior secured notes due in 2026 at 10.5%. A second offering of €425m ($485m) in secured notes, also due in 2026, priced at 10.125%. The offerings are expected to close on Monday.
The move will give the company a further $1.26bn in liquidity.
The notes will be backed by its ships and intellectual property and secured by a second-priority lien on the collateral,
Miami-headquartered Carnival, which has already obtained $10bn in financing, expects to use the money from the offerings for general corporate purposes.
Sell, sell, sell
It announced plans last Friday to sell 13 ships in an effort to become a "leaner" company and raise more sorely needed cash.
Those vessels have a total market value of at least $1bn, according to VesselsValue.
On Thursday, Carnival entered into an agreement with Bonheur, owned by Norway's Olsen family, to sell two Holland America Line ships to Fred Olsen Cruises.
It has also pushed back deliveries of five newbuildings set to arrive in 2021.
Carnival, whose shares are listed in the US and UK, gained 16.2% on Wednesday, to close at $17.48 on the New York Stock Exchange.
They fell by 2.1% to $17.10 in the first two hours of after-market trading.
