Sarah Patel's Avatar
published in Blogs
Jul 07, 2021
Carnival (CCL, $25.04) will buy back up to $2 billion of 11.5% senior secured notes due 2023

Carnival (CCL, $25.04) will buy back up to $2 billion of 11.5% senior secured notes due 2023

On Monday, Cruise company Carnival began a tender offer to purchase up to $2 billion of 11.5% senior secured notes due 2023. The company  could issue new first-priority debt to finance the buyback.

Carnival issued the notes in April 2020 to boost its cash reserves, as the COVID pandemic wreaked havoc on the cruise industry. The offer on the notes pays back holders $1.1125 on the dollar.

Last week, Carnival revealed that it may sell up to $500 million of shares, and would use the funds to buy ordinary shares of Carnival Plc, trading in the U.K., and for general purposes.

The company announced last month that it plans to have all 91 of its ships back to service by next spring.

Related Tickers: CCL