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Carnival prices and downsizes share offering to $500m, upsizes notes offerings to $4bn

carnival corp. logo.jpg
Carnival Corp. & plc reduced its underwritten public stock offering to $500m from $1.25bn and upsized its notes offerings to $4bn from $3bn.

Stock priced at $8/share

Some 62.5m shares of common stock were priced at $8/share. Carnival shares closed at $8.80 Wednesday.

Pricing of notes

Carnival priced its private offerings to eligible purchasers of $4bn in 11.5% first-priority senior secured notes due 2023 and $1.75bn in 5.75% senior convertible notes due 2023. The aggregate principal amount was increased from the earlier announced $3bn.

Underwriters get option to purchase additional shares

The common stock offering is expected to close April 6. Carnival granted the underwriters an option to purchase up to 9.375m additional shares, which must be exercised by May 1.

Net proceeds are expected to be used for general corporate purposes.

BofA Securities, Goldman Sachs & Co. LLC and JPMorgan are acting as joint book-running managers.

Option for notes purchasers

The company granted the initial purchasers of the convertible notes an option to purchase up to an additional $262.5m, by April 18.

The offering of convertible notes is expected to close on April 6 and the offering of senior secured notes is expected to close April 8.

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