By Paul A. Harris
Portland, Ore., Oct. 18 – Carnival Corp. priced an upsized $2.03 billion issue of 10 3/8% 5.5-year senior priority notes (B2/B+) at 98.465 to yield 10¾% in a Tuesday drive-by, according market sources.
The issue size increased from $1.25 billion.
The yield printed at the tight end of the 10¾% to 11% yield talk. The issue price came slightly rich to price talk that set out approximately 2 points of original issue discount. Initial guidance had the notes coming to yield 11¼% to 11½%.
The order book built to $6 billion of demand, including $750 million of reverse inquiry, according to a sellside source, who added that much of that demand emanated from real-money accounts.
The Carnival Holdings (Bermuda) Ltd. 10 3/8% senior priority notes due May 2028 were 98 7/8 bid, 99 1/8 offered (issue price was 98.465) late Tuesday afternoon, the sellsider said.
Joint global coordinator and joint bookrunner J.P. Morgan Securities LLC was at the left of the syndicate of banks that managed the sale. BofA Securities Inc. and Barclays were also global coordinators. Other joint bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BNP Paribas Securities Corp., Mizuho Securities USA Inc., BOC, Intesa, Lloyds Securities LLC and PNC Capital Markets LLC.
The Miami-based cruise operator plans to use the proceeds to make principal payments on debt and for general corporate purposes.
The company stated that it may use all or a portion of the proceeds to temporarily repay debt under its revolver.
In connection with the notes, Carnival Corp. and its subsidiaries will contribute 12 unencumbered vessels to Carnival Holdings (Bermuda), with each of these vessels continuing to operate under one of the Carnival Corp., Carnival plc or one of their subsidiaries' brands, the company stated in a Tuesday press release.
| Issuer: | Carnival Holdings (Bermuda) Ltd.
|
| Amount: | $2.03 billion, increased from $1.25 billion, then $2 billion
|
| Issue: | Senior priority notes
|
| Maturity: | May 1, 2028
|
| Global coordinators: | J.P. Morgan Securities LLC, BofA Securities Inc. and Barclays
|
| Joint bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BNP Paribas Securities Corp., Mizuho Securities USA Inc., BOC, Intesa, Lloyds Securities LLC and PNC Capital Markets LLC
|
| Coupon: | 10 3/8%
|
| Price: | 98.465
|
| Yield: | 10¾%
|
| Spread: | 649 bps
|
| First call: | May 1, 2025 at 105.188
|
| Trade date: | Oct. 18
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10¾% to 11% including approximately 2 points OID
|
| Marketing: | Drive-by
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
