There will be no dilution to shareholders at the scheduled maturity versus the existing notes and no upfront cost.
18-month extension
Carnival Corp., Carnival plc and certain subsidiary guarantors entered into separate, privately negotiated exchange agreements with certain holders of 5.75% convertible senior notes due 2023 and will exchange $339m of these existing notes for $339m of new convertible senior notes due October 2024.
The new notes will have the same initial conversion price as the existing notes, representing no dilution to shareholders at scheduled maturity versus the existing notes, the same coupon and no upfront cost to the company.
They will be fully and unconditionally guaranteed on a senior unsecured basis by Carnival plc and the subsidiary guarantors.
$183m of existing notes will remain outstanding
Following the closing of this notes exchange, $183m of existing notes will remain outstanding. The exchange is expected to close on Aug. 22.
The new notes were offered following an exemption from the registration requirements under the US Securities Act. The new notes and any shares of common stock issuable upon conversion will not be registered under the US Securities Act or any state securities laws and may not be offered or sold in the US absent registration or an applicable exemption.
PJT Partners is serving as independent financial advisor to Carnival Corp. & plc.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.
Add Seatrade Cruise News to your Google News feed.  |
