Carnival Boosts Its Bond Offering After a Red-Hot Investor Response

Seeking to raise billions by issuing new stock and securing fresh debt, Carnival (NYSE: CCL) landed some big investors by baiting the hook on its bond offering with a 12.5% coupon rate, according to Bloomberg. That record-setting yield attracted so much interest that the cruise line operator decided to raise its bond offering from $3 billion to $4 billion.

Originally, the company planned to issue bonds denominated in both dollars and euros to appeal to American and European bond investors. However, a massive influx of dollar orders -- the total order book hit $17 billion -- caused Carnival to drop the euro bond sale, issue the additional dollar notes, and cut the dollar coupon rate to a still impressive 11.5%. That's the same rate the euro bonds would have come with.

Image source: Carnival Corporation

Continue reading

Source Fool.com