8th Apr 2020 17:41
(Alliance News) - Embattled cruise ship operator Carnival PLC on Wednesday said it has closed its previously announced USD4 billion offering of 11.5% first-priority senior secured notes due 2023.
Shares in Carnival closed up 1.1% at 884.60 pence each in London. Shares in New York were up 6.1% at USD11.99 each.
On Tuesday, the company had said it raised USD2.53 billion in total through its previously announced share issue and note offering.
The company had raised USD575 million through the issue of 71.9 million shares at USD8 per share. On Thursday last week, Carnival had downsized its share placing to 62.5 million shares, after originally saying it would offer USD1.25 billion worth of stock.
The final total of 71.9 million shares issued includes 9.4 million shares taken by underwriters in a full exercise of their option to purchase additional shares.
Amid the fundraise, Saudi Arabia's Public Investment Fund has taken a sizeable stake in Carnival, a US regulatory filing showed on Monday. The Public Investment Fund - the sovereign wealth fund of Saudi Arabia - now holds a 8.2% stake in cruise operator Carnival, or 43.5 million shares.
The date of the event which triggered the regulatory filing was denoted as March 26, meaning the fund's stake exceeded 5% on this date.
The FTSE 100-listed company separately on Tuesday had said it raised USD1.95 billion via issue of 5.75% convertible senior notes due 2023.
On Wednesday, Carnival said initial purchasers of the 2023 notes fully exercised their option to purchase an additional USD62.5 million aggregate principal amount of notes.
Net proceeds from the capital raise are expected to be used by the company for general corporate purposes.
Carnival has been hit hard by the global Covid-19 pandemic, with port restrictions around the world forcing the company to halt cruise operations and offer refunds to customers.
The company owns cruise brands such as P&O Cruises and Cunard, both of which have suspended sailings.
By Tapan Panchal; [email protected]
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