Following COVID-19 pandemic and the major impacts that has brought within the cruise industry, Carnival Corp is planning to raise $1.26 billion in a bond offering, in an effort to keep its business.
According to Reuters, the bond offering is split into a $775 million tranche paying an annual coupon of 10.5%, and 425 million euro-tranche ($484.93 million) paying 10.125%.
What is more, the senior secured notes are due 2026, with the offering expected to close on July 20.
In light of the above, Carnival informed that the notes will be secured by a second-priority lien, a lower priority of repayment in case of bankruptcy or liquidation of assets.
For the records, the cruise company is one of the most hitted by the outbreak, while several cruise operators have been forced to raise billions through various means, even by pledging ships and private islands.
Overall, Carnival Corporation recently provided a business update and additional financial information for the second quarter ended May 31, 2020. The company intends to accelerate the removal of ships in fiscal 2020.
