Carnival said to prepare bond sale for next week to buy out debt: Carnival shares have fallen more than 25% in past 30 days
(VIANEWS) – Carnival Corp. seeks to lower borrowing costs with the sale of new junk bonds that would refinance debt the cruise line sold during the height of the pandemic at nearly triple the cost.
As Array reported, the new offering could be sold as early as next week, and the first price talks are between 4% and 4.125%, according to people with knowledge of the transaction.
The proceeds will fund a take-over bid, launched last week, to buy back up to half of Carnival’s $ 4 billion in three-year guaranteed notes with a whopping 11.5% coupon. Carnival issued these tickets in April last year to raise funds as cruises halted around the world. If the company were to buy back $ 2 billion of that debt at a rate of 4%, it would save $ 150 million per year in interest charges, according to Bloomberg calculations.
Actions of Carnival (CCL) fell 25.55% in 30 days, from $ 28.1 to $ 20.92 at 10:43 a.m. EST Sunday, after four consecutive sessions of losses. NYSE Composite (CCL) slipped 0.81% to $ 16,364.66, after four consecutive losing sessions.
Carnival’s latest close was $ 21.95, 30.36% below its 52-week high of $ 31.52.
The latest volume reported today for Carnival is 41,516,036, which is 52.19% above its average volume of 27,278,606.
The company’s growth estimates for the current quarter and the next are 43.4% and 48%, respectively.
The year-over-year quarterly revenue growth declined 99.5% to now stand at $ 831 million for the past twelve months.
Carnival’s current volatility last week, last month and last quarter was 1.27%, 1.28% and 2.21% respectively.
Carnival’s current volatility ranking, which measures the volatility of a financial asset (the change between the lowest and highest value in a period), was 2.79% (last week), respectively, 2, 54% (last month) and 2.21% (last quarter). .
Stock price ranking
According to the Stochastic Oscillator, a useful indicator of overbought and oversold conditions,
Carnival’s stock is considered overbought (> = 80).
Upper and lower value of annual Carnival shares
Carnival stock is valued at $ 20.92 at 10:43 a.m. EST, well below its 52-week high of $ 31.52 and well above its 52-week low of $ 12.11 .
Carnival moving average
Carnival’s value is well below its 50-day moving average of $ 27.56 and well below its 200-day moving average of $ 25.58.
News from previous days on Carnival (CCL)
Carnival said they are preparing the bond sale for next week to buy back the debt. According to Bloomberg Quint on Thursday, July 15, “A representative for Carnival did not immediately respond to a request for comment. will receive 114.25 cents on the dollar. “
More news on Carnival (CCL).