Carnival Corp has priced a registered direct offering of 99,185,968 shares at $14.02 per share to a limited number of holders of its 5.75% convertible senior notes, due 2023.
Proceeds will be used to re-purchase $885.589 mill principal amount of its convertible notes in privately negotiated transactions.
Carnival said that these transactions will not have a material impact on the company’s cash position and following the re-purchases, $1,126,911,000 principal amount of the convertible notes will remain outstanding.
The closing date was 7th August, 2020, except 5.5 mill shares, which were expected to close on 10th August, 2020.
“With more than $20 bill in debt and a monthly cash burn of $650 mill, Carnival Corp could become insolvent in less than a year and a half,” said Bears of Wall Street on Seeking Alpha.
