CCL Stock: Why The Price Fell Today

By Amit Chowdhry ● Oct 19, 2021
  • The stock price of Carnival Corp (NYSE: CCL) fell by over 3% today. This is why it happened.

The stock price of Carnival Corp (NYSE: CCL) fell by over 3% today. Investors are responding negatively to Carnival Corporation announcing that they closed its previously announced incremental first-priority senior secured term loan facility in an aggregate principal amount of $2.3 billion. 

The proceeds from the new incremental term facility are being used for redeeming all of the outstanding 11.5% First-Priority Senior Secured Notes due 2023 of the company and to pay accrued interest on such Redeemed Notes and related fees and expenses. 

This refinancing transaction will generate annual interest savings of over $135 million and extend maturities. And the loans under the new incremental term facility will bear interest at a rate per annum equal to adjusted LIBOR with a 0.75% floor, plus a margin equal to 3.25%, and will mature in 2028. 

The terms of the new incremental term facility are otherwise generally consistent with the terms of their existing term loan facility.

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