Carnival to raise $1bn to make debt payments, shares tumble

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Sharecast News | 16 Nov, 2022

09:40 14/11/24

  • 1,739.50
  • 0.09%1.50
  • Max: 1,745.50
  • Min: 1,729.47
  • Volume: 22,369
  • MM 200 : 1,197.11

Carnival tumbled on Wednesday after the cruise operator announced plans to raise $1bn with convertible senior notes to make principal payments on debt and for general corporate purposes.

The convertible notes are part of the company’s 2024 refinancing plan.

They will pay interest semi-annually on 1 June and 1 December of each year, beginning on 1 June 2023, at a rate of 5.75% per year. The notes will mature on 1 December 2027, unless earlier repurchased, redeemed or converted.

At 1145 GMT, the shares were down 13.6% at 729.40p.

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