Business
Carnival Announces Upsizing and Pricing
Carnival Announces Upsizing and Pricing.
About this update from Carnival Plc
[{"type":"text","content":"\n \n Carnival Corporation & plc Announces Upsizing and Pricing of 11.500% First-Priority Senior Secured Notes due 2023 and Pricing of 5.75% Senior Convertible Notes due 2023\n MIAMI, April 2, 2020 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) (the \"Company\") the world's largest leisure travel company, today announced that Carnival Corporation (the \"Corporation\") has priced the private offerings of $4 billion aggregate principal amount of 11.500% first-priority senior secured notes due 2023 (the \"Secured Notes\") of the Corporation and $1.75 billion aggregate principal amount of 5.75% senior convertible notes due 2023 of the Corporation (the \"Convertible Notes\" and, collectively with the Secured Notes, the \"Notes\"). The aggregate principal amount of Secured Notes to be issued was increased to $4 billion from the previously announced $3 billion. The Corporation has granted the initial purchasers of the Convertible Notes an option to purchase on or before April 18, 2020, up to an additional $262.5 million aggregate principal amount of Convertible Notes.\n The Secured Notes will pay interest semi-annually on April 1 and October 1 of each year, beginning on October 1, 2020, at a rate of 11.500% per year. The Secured Notes will mature on April 1, 2023. The Convertible Notes will pay interest semi-annually on April 1 and October 1 of each year, beginning on October 1, 2020, at a rate of 5.75% per year. The Convertible Notes will mature on April 1, 2023, unless earlier converted, redeemed or repurchased.\n The initial conversion rate per $1,000 principal amount of Convertible Notes is equivalent to 100.0000 shares of common stock of the Corporation, which is equivalent to a conversion price of approximately $10.00 per share, subject to adjustment in certain circumstances. The initial conversion price represents a premium of approximately 25% to the public offering price in the Corporation's concurrent common stock offering.\n Each series of Notes will be fully and unconditionally guaranteed, jointly and severally, by Carnival plc and certain of the Corporation's and Carnival plc's subsidiaries that own or operate the Company's vessels and material intellectual property. Additionally, the Secured Notes and the related guarantees will be secured by a first-priority lien on the colla...