{"id":42628,"date":"2023-07-31T12:30:15","date_gmt":"2023-07-31T16:30:15","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/carnival-bonds-climb-after-cruise-operator-says-it-will-save-120-million-a-year-by-retiring-1-2-billion-in-high-cost-debt\/"},"modified":"2023-07-31T12:30:17","modified_gmt":"2023-07-31T16:30:17","slug":"carnival-bonds-climb-after-cruise-operator-says-it-will-save-120-million-a-year-by-retiring-1-2-billion-in-high-cost-debt","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=42628","title":{"rendered":"Carnival bonds climb after cruise operator says it will save $120 million a year by retiring $1.2 billion in high-cost debt"},"content":{"rendered":"
\n

Carnival Corp.\u2019s bonds were up by about a point early Monday, after the cruise operator said it would retire $1.2 billion of its highest-cost debt and issue a new $1 billion secured first-lien term loan.<\/p>\n

Carnival
\n CCL,
\n +1.34%<\/bg-quote><\/p>\n

CCL,
\n +0.76%<\/bg-quote>
\n Chief Financial Officer David Bernstein said the company has confidence in its business and cash-flow generation as it enjoys a strong recovery in travel from customers eager to spread their wings after the restraints created by the COVID pandemic during the past three years.<\/p>\n

\n

The company said it expects to save about $120 million in interest expense on an annualized basis by redeeming all of its 10.5% second-priority senior secured notes due in 2026 and its 10.125% second-priority senior secured notes due in 2026.<\/p>\n

\u201cIn connection with this retirement, we plan to extend some of the lowest cost public debt in our portfolio,\u201d Bernstein said in a statement.<\/p>\n

\u201cThis is yet another step forward in our deleveraging journey, building on the $1.4 billion we already early retired this year. With this debt repayment, we now expect our year-end debt balance to be less than $32.0 billion, an improvement over the November 30, 2023, debt balance of less than $33.0 billion provided in our June guidance,\u201d he said.<\/p>\n

As the chart below from data-as-a-service provider\u00a0BondCliQ Media Services\u00a0shows, there was only buying for Monday\u2019s opening trades.\u00a0<\/p>\n

<\/p>\n
<\/p>\n
<\/div>\n<\/figure><\/div>\n

The bonds have enjoyed better buying over the last 10 days, according to BondCliQ, led by the 10.375% notes that mature in 2028.<\/p>\n

<\/p>\n
<\/p>\n
\n \"\"\n <\/div>\n<\/figure><\/div>\n

Carnival said it would issue a new senior secured first-lien term loan B facility with an original principal amount of $1 billion, expected to mature in 2027. Carnival may raise an additional $500 million of other secured debt maturing in 2029. <\/p>\n

The proceeds will be used to repay a portion of borrowings under its existing first-priority senior secured term loan facility maturing in 2025. <\/p>\n

See also:<\/strong> Royal Caribbean\u2019s stock soars to pre-COVID levels after earnings beat and big bump up in outlook<\/p>\n

In June, Carnival reported fiscal second-quarter results that beat expectations, and provided an upbeat outlook.<\/p>\n

Net losses for the quarter to May 31 narrowed by 78%, to $407 million, or 32 cents a share, from $1.83 billion, or $1.61 a share, in the same period a year ago.<\/p>\n

Excluding nonrecurring items, adjusted per-share losses narrowed 81%, to 31 cents from $1.64, to beat the FactSet loss consensus of 34 cents.<\/p>\n

Revenue rocketed 104.5% to a second-quarter record of $4.91 billion, above the FactSet consensus of $4.79 billion. Passenger-ticket revenue soared 144.4% to $3.14 billion amid higher pricing, and onboard and other revenue increased 58.6% to $1.77 billion.<\/p>\n

For fiscal 2023, the company raised its outlook for adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) to $4.1 billion to $4.25 billion, up from $3.9 billion to $4.1 billion.<\/p>\n

The company now expects 2023 net per diems in constant currency, or the cruise rate divided by days on board excluding changes in foreign-currency rates, of 5.5% to 6.5% above 2019 levels, compared with previous guidance of up 2.5% to 3.5%.<\/p>\n

The stock was up 1% Monday but has gained a stunning 136% in the year to date, while the S&P 500
\n SPX,
\n +0.05%<\/bg-quote>
\n has gained 19%. <\/p>\n

Related:<\/strong> Norwegian Cruise stock falls as analyst worries the \u2018undeniable\u2019 recovery is already priced in<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Carnival Corp.\u2019s bonds were up by about a point early Monday, after the cruise operator said it would retire $1.2 billion of its highest-cost debt and issue a new $1 billion secured first-lien term loan. Carnival CCL, +1.34% CCL, +0.76% Chief Financial Officer David Bernstein said the company has confidence in its business and cash-flow […]<\/p>\n","protected":false},"author":1,"featured_media":42629,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-42628","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nCarnival bonds climb after cruise operator says it will save $120 million a year by retiring $1.2 billion in high-cost debt | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Carnival Corp.\u2019s bonds were up by about a point early Monday, after the cruise operator said it would retire $1.2 billion of its highest-cost debt and\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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