Carnival (NYSE:CCL) stock is rising higher on Tuesday as investors react to news of the cruise company offering bonds to raise money.
According to a press release, Carnival will offer $1.25 billion worth of senior bonds that will be due in 2028. In addition to this news, the company is also offering 12 unencumbered vessels to the issuer of the notes, which will continue business under Carnival.
Carnival notes that the senior notes are being offered to “qualified institutional buyers.” These senior notes are “unconditionally guaranteed on an unsecured basis, jointly and severally, by the Company.”
CCL Stock: Plans for the Funds
Carnival explains that it already has a use for the funds generated from these senior notes. The cruise company will use the money from the bonds to make principal payments on debt. It will also use the funds for general corporate purposes.
Investors will note that the plan to raise money through senior notes follows a rough few years of business. Carnival and other cruise companies have seen incredible losses due to Covid-19 lockdowns and ensuing restrictions.
CCL stock is experiencing heavy trading today with the senior note news. As of this writing, more than 60 million shares of the stock have changed hands. That’s almost surpassing the daily average trading volume of 61 million shares.
CCL stock is up 9.6% as of Tuesday morning but is down 63% year-to-date (YTD).
There’s plenty more stock market news for traders to sink their teeth into below!
We’re serving up all of the hottest stock market news to investors on Tuesday! Among that is why Mind Medicine (NASDAQ:MNMD), Mullen Automotive (NASDAQ:MULN) and Mobileye are in the news. You can catch up on that at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.