Carnival shops $1 billion equivalent secured notes in two tranches, pricing expected Wednesday

By Paul A. Harris

Portland, Ore., July 14 – Carnival Corp. kicked off a two-part offering of around $1 billion equivalent of 5.5-year second priority senior secured notes on an investor conference call on Tuesday, according to market sources.

The Rule 144A and Regulation S deal features $550 million of the notes with initial price talk in the 11% area, and €400 million with initial talk in the 10½% area, a trader said.

The deal could price as early as Wednesday, the source said.

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and BofA Securities Inc. are global coordinators and joint bookrunners. Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., NatWest Markets Securities Inc., Santander Investment Securities Inc. and SMBC Nikko Securities America Inc. are joint bookrunners.

ANZ Securities Inc., Bank of China, DZ Bank, PNC Capital Markets LLC and Siebert Williams Shank & Co. LLC are the co-managers.

The notes in both tranches come with three years of call protection.

The Miami-based leisure travel company plans to use the proceeds for general corporate purposes.

On April 1, 2020, with news of the coronavirus pandemic generating extreme volatility in the markets, Carnival became one of the first companies from sectors with maximum exposure to Covid-19 to raise cash in the debt capital markets when it priced a $4 billion issue of 11½% first-priority senior secured notes due April 2023.

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