Carnival Corporation halts stock dividends

[rkacruiser]

5 minutes ago, KirkNC said:

Not unless you are an accredited investor:

 

https://www.investopedia.com/terms/a/accreditedinvestor.asp

 

Thank you.  That definition does not fit me.  I won't call my broker tomorrow morning.

[KirkNC]

1 hour ago, rkacruiser said:

 

Thank you.  That definition does not fit me.  I won't call my broker tomorrow morning.

Me either 😁😎

[Boatdrill]

What was the minimum amount of shares required for a dividend ? 

[rkacruiser]

14 minutes ago, Boatdrill said:

What was the minimum amount of shares required for a dividend ? 

 

Regardless of the number of shares owned, those shares would earn a dividend.

 

I think you are getting confused between the number of shares that needed to be owned for a Shareholder's Benefit on-board credit and the dividend earned.  There is a 100 share owned requirement to get the Shareholder's Benefit.  

[freestyling]

Guess they wanted to secure $’s and thought The deal to secure those dollars could get worse the longer they shopped it ? 

[Boatdrill]

41 minutes ago, rkacruiser said:

 

Regardless of the number of shares owned, those shares would earn a dividend.

 

I think you are getting confused between the number of shares that needed to be owned for a Shareholder's Benefit on-board credit and the dividend earned.  There is a 100 share owned requirement to get the Shareholder's Benefit.  

Thanks for the info. I'm aware of the Shareholder's Benefit....was just curious about a minimum of shares for a dividend.

 

[npcl]

1 hour ago, Boatdrill said:

Thanks for the info. I'm aware of the Shareholder's Benefit....was just curious about a minimum of shares for a dividend.

 

A dividend is paid per share.  It is probably even prorated on partial shares. So if you own any of the stock you get the dividend that is paid on it.  Dividends are usually listed per share.

Edited April 1, 2020 by npcl

[KirkNC]

11 hours ago, Boatdrill said:

What was the minimum amount of shares required for a dividend ? 

one

[ontheweb]

55 minutes ago, KirkNC said:

one

 

55 minutes ago, KirkNC said:

one

And that would get you 50 cents.

[LMaxwell]

2 hours ago, ontheweb said:

 

And that would get you 50 cents.

Quarterly.  

 

$2 per share dividend was very strong for a travel / entertainment sector company. 

[KirkNC]

Bloomberg is reporting that investors were so excited about the short term bond offering that Carnaval has increased the offering to $4.0b.  In fact the offering was oversubscribed at $10.0b 😜😁😄😃😎.  That’s a real vote of confidence by investors.

[KirkNC]

3 hours ago, KirkNC said:

Bloomberg is reporting that investors were so excited about the short term bond offering that Carnaval has increased the offering to $4.0b.  In fact the offering was oversubscribed at $10.0b 😜😁😄😃😎.  That’s a real vote of confidence by investors.

Yikes, Bloomberg has updated the subscription number to $17.0b, crazy.

[KirkNC]

And the results ar3 in:

 

 

Carnival priced $4 billion in bonds maturing in 2023 - upsized from the $3 billion originally planned - with a yield at par value of 11.5%, it said in a statement. 

By comparison, Carnival paid a 1% yield in October, when it borrowed 600 million euros ($657.7 million) in the European debt market. Moreover, Carnival had to use its ships as collateral to attract bond investors on Wednesday. 

The company also raised $1.75 billion in convertible notes with a 5.75% coupon, it added.

Beyond the bond issues, Carnival also issued new stock to raise $500 million, less than the $1.25 billion it was targeting. The issue was priced at $8 per share, the company said. 

Carnival shares had tumbled 33.2% on Wednesday on the capital raising news, ending at $8.80.

The funds are expected to be enough to cover Carnival's existing financial obligations for the next 12 months, the company said on Tuesday.

[rkacruiser]

14 hours ago, KirkNC said:

And the results ar3 in:

 

 

Carnival priced $4 billion in bonds maturing in 2023 - upsized from the $3 billion originally planned - with a yield at par value of 11.5%, it said in a statement. 

By comparison, Carnival paid a 1% yield in October, when it borrowed 600 million euros ($657.7 million) in the European debt market. Moreover, Carnival had to use its ships as collateral to attract bond investors on Wednesday. 

The company also raised $1.75 billion in convertible notes with a 5.75% coupon, it added.

Beyond the bond issues, Carnival also issued new stock to raise $500 million, less than the $1.25 billion it was targeting. The issue was priced at $8 per share, the company said. 

Carnival shares had tumbled 33.2% on Wednesday on the capital raising news, ending at $8.80.

The funds are expected to be enough to cover Carnival's existing financial obligations for the next 12 months, the company said on Tuesday.

 

Thank you for posting this information.  I appreciate it very much.

[Steve Q]

Below is a link to the latest article regarding the solvency issue. While it specifically addresses the issue with Carnival, Norwegian and Carnival are mentioned.

I also thought it was interesting to note that one analyst stated that it could be up to a year for things to return to normal. Also, the cruise lines are planning to significantly reduce fares. Those that believe there is going to be a rush to book cruises might be mistaken.

 

https://www.cnbc.com/2020/04/05/carnivals-struggle-to-survive-the-coronavirus-as-outbreak

 

[ski ww]

An interesting article, thanks for posting.

[Krazy Kruizers]

Thank you Steve Q for the link.

 

Very interesting.