2nd Apr 2020 08:22
(Alliance News) - Cruise ship operator Carnival PLC on Thursday reduced the size of a share placing but said a note offering has been upscaled.
Shares were 7.7% lower in early trade in London on Thursday at 719.20 pence each.
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, which have both suspended sailings.
Carnival will be offering 62.5 million shares at USD8.00 each. This will raise USD500 million approximately, but Carnival had previously said it would be offering USD1.25 billion worth of stock.
Bank of America Corp, JPMorgan Chase & Co, and Goldman Sachs Group Inc are acting as joint bookrunners for the placing.
In a separate announcement, Carnival said it will be offering USD4 billion worth of senior secured notes, rather than USD3 billion planned before.
The USD4 billion notes carry a coupon of 11.500% and are due in 2023. Carnival is also offering USD1.75 billion of senior convertible notes due 2023.
Carnival will use the funds for general corporate purposes, it said.
By George Collard; [email protected]
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