Carnival Reducing New Stock Issue, Increasing Debt Flotation
Carnival's (NYSE: CCL)(NYSE: CUK) planned share issue will be significantly smaller than previously announced. Wednesday afternoon, the struggling cruise ship operator announced it is floating 62.5 million new shares of stock, which should bring in $500 million.
The price per share will be $8, which is lower than the closing prices of both Carnival share classes on Wednesday. The company reiterated that it will use the proceeds of the issue "for general corporate purposes." It did not elaborate.
While downsizing the stock issue, though, Carnival increased a planned flotation of debt. It is issuing $4 billion worth of 11.5% first-priority senior secured notes, which mature on April 1, 2023.
Source Fool.com
