By Abigail W. Adams
Portland, Me., Nov. 16 – Carnival Corp. priced $1 billion of five-year convertible notes after the market close on Tuesday at the cheap end of talk with a coupon of 5.75% and an initial conversion premium of 20%, according to a market source and a company news release.
Price talk was for a coupon of 5.25% to 5.75% and an initial conversion premium of 20% to 25%.
Citigroup Global Markets Inc., Barclays and BofA Securities Inc. were bookrunners for the Rule 144A offering, which carries a greenshoe of $150 million.
The notes are non-callable until Dec. 5, 2025 and then redeemable for cash subject to a 130% hurdle.
The offering is part of the company’s 2024 refinancing plan with proceeds to be used to make principal payments on debt and for general corporate purposes.
Carnival is a Miami-based cruise line operator.
| Issuer: | Carnival Corp.
|
| Amount: | $1 billion
|
| Greenshoe: | $150 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Dec. 1, 2027
|
| Bookrunners: | Citigroup Global Markets Inc., Barclays and BofA Securities Inc.
|
| Coupon: | 5.75%
|
| Price: | Par
|
| Yield: | 5.75%
|
| Conversion premium: | 20%
|
| Conversion price: | $13.39
|
| Conversion rate: | 74.6714
|
| Call options: | Non-callable until Dec. 5, 2025 and then redeemable for cash subject to a 130% hurdle
|
| Pricing date: | Nov. 15
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 5.25% to 5.75% and initial conversion premium of 20% to 25%
|
| Stock symbol: | NYSE: CCL
|
| Stock price: | $11.16 at market close Nov. 16
|
| Market capitalization: | $13.89 billion
|
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