Carnival Corporation & plc, the world's largest cruise shipping company, has unveiled a massive issue of equity and debt in the aftermath of the coronavirus outbreak.
Carnival Corporation, the Panama domiciled and US listed holding company of the group, has commenced an underwritten public offering of $1.25 billion of shares of common stock.
“The Corporation intends to grant the underwriters an option to purchase up to $187.5 million of additional shares. The Corporation expects to use the net proceeds from the offering for general corporate purposes,” the company said in a statement.
The corporation also has commenced private offerings to eligible purchasers of $3 billion aggregate principal amount of first-priority senior secured notes due 2023 and $1.75 billion aggregate principal amount of senior convertible notes due 2023.
Alternatively, the last-name amount would be up to $2.0125 billion aggregate principal amount if the initial purchasers exercise in full their option to purchase additional convertible notes.
“The Corporation intends to grant the initial purchasers of the Convertible Notes an option to purchase, during a 13-day period beginning on, and including the first day on which the Convertible Notes are issued, up to an additional $262.5 million aggregate principal amount of Convertible Notes,’ the company said.
Each series of notes would 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. Carnival plc is the group's UK domiciled and London listed holding company.
“Additionally, the Secured Notes and the related guarantees will be secured by a first-priority lien on the collateral, which includes, without limitation, pledges on the capital stock of each subsidiary guarantor, mortgages on a substantial majority of the vessels and related vessel collateral, material intellectual property and pledges over other vessel-related assets including inventory, computer software and casino equipment,” Carnival said.
