By Paul A. Harris
Portland, Ore., Aug. 14 – Carnival Corp. priced a $900 million issue of seven-year senior secured second priority notes (Ba1/BB+) at par to yield 9 7/8% in a Friday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 10% area. Initial price talk had the notes coming to yield 10% to 10¼%.
The deal was heard to be playing to $2 billion of orders, a trader said.
J.P. Morgan Securities LLC was the lead.
The Miami-based cruise line plans to use the proceeds to enhance its liquidity position by refinancing its upcoming debt maturities.
| Issuer: | Carnival Corp.
|
| Amount: | $900 million
|
| Maturity: | Aug. 1, 2027
|
| Securities: | Senior secured second priority notes
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 9 7/8%
|
| Price: | Par
|
| Yield: | 9 7/8%
|
| Spread: | 938 bps
|
| Call protection: | 3.5 years
|
| Trade date: | Aug. 14
|
| Settlement date: | Aug. 18
|
| Ratings: | Moody's: Ba1
|
| S&P: BB+
|
| Distribution: | Rule 144A
|
| Price talk: | 10% area
|
| Marketing: | Drive-by
|
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