Carnival Cruise Lines Seeks to Borrow $3 Billion

The Carnival Corp. Royal Princess cruise ship sits docked outside the Port of Los Angeles in Los Angeles, California, U.S., on Sunday, March 8, 2020. The Centers for Disease Control and Prevention (CDC) issued a no-sail order to the Royal Princess as officials warned Americans over the weekend to avoid cruise ships. Photographer: Tim Rue/Bloomberg , Bloomberg

Davide Scigliuzzo, Bloomberg News

Mar 31, 2020

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(Bloomberg) -- Cruise line operator Carnival Corp. is turning to the bond market to raise $3 billion of cash after the Covid-19 pandemic halted global travel, bringing its business to a standstill.

The company is tapping investors on both sides of the Atlantic with sales in U.S. dollars and euros, according to people with knowledge of the matter who asked not to be identified because the details are private.

The new notes will be secured by a first-priority claim on the company’s assets and mature in three years, the people said.

JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp. are managing the sale, which is expected to be completed on Wednesday.

The company also announced Tuesday plans to sell $1.25 billion of shares.

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