Mission impossible? Cruise co Carnival storms into capital markets with high stakes rescue

By Aidan Gregory, Jon Hay, Owen Sanderson, Sam Kerr
02 Apr 2020

Dollar high yield and convertible bond buyers dived straight into the riskiest possible end of the market on Wednesday, snapping up rescue issues for cruise operator Carnival Corporation, a firm at the centre of the coronavirus storm. Carnival pledged nearly all its ships to back bondholders’ investments, while convert investors spied a chance to double their money — if the cruise industry can bounce back. Aidan Gregory, Jon Hay, Sam Kerr and Owen Sanderson report.

The company also raised $500m of new equity capital, scaling back the offering from an original target size of $1.25bn. Carnival’s shares are down more than 70% this year, making the capital raising painfully dilutive given the size, but bankers hinted that there was less buying interest for ...

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