Carnival’s remaining greenshoe exercised, lifts convertible notes due 2023 to $2.01 billion

By Wendy Van Sickle

Columbus, Ohio, April 8 – Underwriters for Carnival Corp.’s 5.75% convertible notes (BBB-) due April 1, 2023 exercised the remaining $62.5 million of the deal’s $262.5 million greenshoe, lifting the total amount of the notes to $2,012,500,000, according to a news release.

The underwriters had previously exercised a $200 million portion of the greenshoe, as reported on Monday.

As previously reported, Carnival priced $1.75 billion of the convertibles on April 2 with an initial conversion premium of 25%.

Pricing came at the cheap end of tightened talk for a coupon of 5.5% to 5.75% and at the rich end of talk for an initial conversion premium of 22.5% to 25%.

Initial price talk was for a coupon of 5.75% to 6.25% and an initial conversion premium of 17.5% to 22.5%.

BofA Securities, Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were the joint bookrunners for the Rule 144A offering.

The notes are non-callable and have no put options. There is full dividend protection.

The securities will be settled in cash, shares or a combination of both at the company’s option.

The notes are contingently convertible subject to a 130% trigger.

Proceeds will be used for general corporate purposes.

Carnival is a Miami-based leisure travel company, which operates cruise lines.

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