Summary
Carnival Corporation (CCL) announced the closing of a registered direct offering of approximately 49.2 million shares of common stock on November 19, 2020, at a price of $18.05 per share. The primary purpose of this offering was to repurchase a substantial portion of its outstanding 5.75% Convertible Senior Notes due 2023. Specifically, $427.9 million in principal amount of these notes were repurchased in privately negotiated transactions using the proceeds from the offering. Furthermore, Carnival expects to close on an additional 8.2 million shares on November 20, 2020, with the intention of using those proceeds to repurchase another $71.5 million of the Convertible Notes. Following these transactions, approximately $627.5 million of the Convertible Notes will remain outstanding. This strategic move aims to deleverage the company's balance sheet by reducing convertible debt.
Key Highlights
- 1Closed a registered direct offering of 49.2 million shares of common stock at $18.05 per share on November 19, 2020.
- 2Used proceeds from the offering to repurchase $427.9 million in principal amount of 5.75% Convertible Senior Notes due 2023.
- 3Anticipates closing on an additional 8.2 million shares on November 20, 2020.
- 4Intends to use proceeds from the additional share sale to repurchase $71.5 million of Convertible Notes.
- 5Following these repurchases, $627.5 million of the Convertible Notes will remain outstanding.
- 6The transactions were conducted under effective registration statements on Form S-3.
- 7The filing includes a cautionary note about forward-looking statements, highlighting significant risks from the COVID-19 pandemic.