Why Is Carnival (CCL) Stock Down 13% Today?


  • Carnival (CCL) stock is falling on a massive debt offering.
  • The company is issuing $1 billion worth of senior notes due in 2027.
  • It will use the funds from this offering to pay debts due in 2024.
CCL Stock - Why Is Carnival (CCL) Stock Down 13% Today?

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Carnival (NYSE:CCL) stock is taking a beating on Wednesday after the cruise line announced a $1 billion debt offering.

According to a press release from Carnival, the convertible senior notes will be due in 2027. The offering from the company is private and it will only offer the notes to eligible institutional investors.

Carnival notes that the issuing of the senior notes is part of its 2024 refinancing plans. The company seeks to use the funds from this offering to pay debts that mature in 2024. It will also use the money for other general corporate purposes.

When the time comes for Carnival to pay off the senior notes, it has a couple of options available. The company can either use cash, stock, or a mix of the two to pay back holders of the debt.

CCL Stock Holders Aren’t Reacting Well to the Debt Offering

Carnival trying to hold off its debts with more debt isn’t going over well with traders. While it pushes off the company’s upcoming debt repayment, taking out more debt to do it has rattled investors.

As a result, strong trading is dragging CCL stock down today as shareholders sell. This has some 55 million shares of the stock on the move as of this writing. That’s quickly approaching its daily average trading volume of about 61 million shares.

CCL stock is down 13.4% as of Wednesday afternoon.

Investors looking for more of the latest stock market news will want to keep reading!

We’ve got all of the most recent stock news traders need to know about on Wednesday! Among that is what has shares of Target (NYSE:TGT), Vinco Ventures (NASDAQ:BBIG), and Phunware (NASDAQ:PHUN) stock moving today. You can catch up on all of that at the following links!

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On the date of publication, William White did not have (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.

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