Carnival Returns to Bond Market Without Ships as Collateral
- Cruise operator has maxed out capacity for secured debt
- New deal follows sentiment boost from vaccine-driven rally
This article is for subscribers only.
For the first time since the pandemic, cruise operator Carnival Corp. is selling debt without pledging its ships as collateral, testing the depths of a market rally that has seen bond buyers betting big on hard-hit industries now that a Covid vaccine is in sight.
Carnival, which earlier this year raised almost $9 billion by issuing bonds and loans backed by its idled ships, is planning to price the equivalent of about $2 billion of unsecured notes in dollars and euros by the end of the week, according to people familiar with the matter.