By Paul A. Harris
Portland, Ore., Feb. 10 – Carnival Corp. priced an upsized $3.5 billion issue of six-year senior bullet notes (B2/B+) at par to yield 5¾% in a Wednesday drive-by, according to market sources.
The issue size increased from $2.5 billion.
The yield printed in the middle of yield talk in the 5¾% area. Initial guidance was in the 6% area.
The deal, which was heard to be playing to around $7.7 billion of orders at one point on Wednesday, initially traded down to 99¾ bid but got a late lift and went out wrapped around par, traders said.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included Goldman Sachs & Co. LLC, BNP Paribas Securities Corp., BofA Securities Inc., Banca IMI San Paolo, Barclays, HSBC Securities (USA) Inc., Lloyds Securities Inc., Mizuho Securities USA Inc., Natixis Securities Americas Inc. and Santander Investment Securities Inc.
The Miami-based cruise line plans to use the proceeds to make principal payments on its debt during 2021 and for general corporate purposes.
Carnival's latest deal represents the sixth tranche of notes, totaling $10.63 billion and €425 million, it brought to market in the past 11 months, as the cruise operator endeavors to survive the catastrophic impact that the coronavirus pandemic has had on the travel industry.
Moody's Investors Service, in addition to assigning its B2 rating to Carnival's new six-year unsecured bullet on Wednesday, also placed its ratings for Carnival and Carnival plc on review for downgrade.
| Issuer: | Carnival Corp.
|
| Amount: | $3.5 billion, increased from $2.5 billion
|
| Tenor: | Six years
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| Securities: | Senior notes
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| Leads: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BNP Paribas Securities Corp., BofA Securities Inc., Banca IMI San Paolo, Barclays, HSBC Securities (USA) Inc., Lloyds Securities Inc., Mizuho Securities USA Inc., Natixis Securities Americas Inc. and Santander Investment Securities Inc.
|
| Coupon: | 5¾%
|
| Price: | Par
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| Yield: | 5¾%
|
| Call protection: | Bullet
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| Trade date: | Feb. 10
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| Ratings: | Moody's: B2
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| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5¾% area
|
| Marketing: | Drive-by
|
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