Carnival driving by with $1.5 billion of 7.5-year senior notes; initial talk low-to-mid 6% area

By Paul A. Harris

Portland, Ore., Oct. 19 – Carnival Corp. plans to price $1.5 billion of 7.5-year senior notes (expected ratings Ba2/B) in a Tuesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the low-to-mid 6% area, a bond trader said.

BofA Securities Inc. is the left global coordinator. Barclays, Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are the joint global coordinators.

J.P. Morgan Securities LLC, Mizuho Securities USA Inc., BNP Paribas Securities Corp., Bank of China, IMI-Intesa, Lloyds Securities Inc. and PNC Capital Markets LLC are the joint bookrunners.

ANZ Securities Inc., Deutsche Bank Securities Inc., DZ Financial Markets LLC, HSBC Securities (USA) Inc., NatWest Markets Securities Inc., Santander Investment Securities Inc. and Sumitomo are the co-managers.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon.

The Miami-based cruise operator plans to use the proceeds to make scheduled principal payments on debt during 2022 and for general corporate purposes.

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