(VIANEWS) – Carnival Corp. is seeking to reduce borrowing costs by issuing new trash bonds to repay debt that the cruise line sold at nearly treble the price during the epidemic.
As reported by Boomberg, the new offering may be sold as soon as next week, and early pricing discussions are in the 4%-4.125% range, according to people with knowledge of the transaction.
The funds will be used to fund a tender offer initiated last week to repurchase up to half of Carnival’s $4 billion three-year secured notes with an 11.5 percent yield. Carnival released the notes in April of last year to generate funds when cruise travel was suspended worldwide. According to Bloomberg calculations, if the business repurchased $2 billion of the debt at a 4% interest rate, it would save $150 million each year in interest payments.
Shares of Carnival (CCL) fell by a staggering 25.55% in 30 days from $28.1 to $20.92 at 10:43 EST on Sunday, after four successive sessions in a row of losses. NYSE Composite (CCL) is sliding 0.81% to $16,364.66, after four successive sessions in a row of losses.
Carnival’s last close was $21.95, 30.36% under its 52-week high of $31.52.
Today’s last reported volume for Carnival is 41516036 which is 52.19% above its average volume of 27278606.
The company’s growth estimates for the present quarter and the next is 43.4% and 48%, respectively.
Year-on-year quarterly revenue growth declined by 99.5%, now sitting on 831M for the twelve trailing months.
Carnival’s last week, last month’s, and last quarter’s current volatility was a negative 1.27%, a negative 1.28%, and a positive 2.21%, respectively.
Carnival’s current volatility rank, which measures how volatile a financial asset is (variation between the lowest and highest value in a period), was 2.79% (last week), 2.54% (last month), and 2.21% (last quarter), respectively.
Stock Price Classification
According to the stochastic oscillator, a useful indicator of overbought and oversold conditions,
Carnival’s stock is considered to be overbought (>=80).
Carnival’s Stock Yearly Top and Bottom Value
Carnival’s stock is valued at $20.92 at 10:43 EST, way under its 52-week high of $31.52 and way above its 52-week low of $12.11.
Carnival’s Moving Average
Carnival’s value is way below its 50-day moving average of $27.56 and way below its 200-day moving average of $25.58.
Previous days news about Carnival (CCL)
Carnival said to prep bond sale for next week to buy back debt. According to Bloomberg Quint on Thursday, 15 July, “A representative for Carnival didn’t immediately respond to a request for comment.”, “Current holders of the existing Carnival 11.5% notes that accept the tender offer by an early deadline of July 19 will receive 114.25 cents on the dollar.”
More news about Carnival (CCL).