Carnival raises more money

[firefly333]

I had a ton and took losses last year. Only 1100 shares left. I was so happy today to see it up. People hoped carnival didnt need to raise more cash.

 

Just saw it on CNBC after hours down 11% raising more money.

 

I promise to never buy more carnival if I can ever get out of these last shares. I had a gob i bought for the dividend.  ...we know how that went. I'll just keep 100 shares and never look back I keep hoping. 

[firefly333]

You can see ccl back under $10 after hours on yahoo or your favorite trading site.

 

 

[JT1962]

They have some tough times over the next few years with all of the debt they took on. Unless they are using the new debt to pay down previous debt coming due or at higher rates, more debt isn’t good.

[BlerkOne]

15 minutes ago, JT1962 said:

They have some tough times over the next few years with all of the debt they took on. Unless they are using the new debt to pay down previous debt coming due or at higher rates, more debt isn’t good.

That is exactly what they are doing. Pushing short term debt out a few years.

[Badfinger]

29 minutes ago, firefly333 said:

I had a ton and took losses last year. Only 1100 shares left. I was so happy today to see it up. People hoped carnival didnt need to raise more cash.

 

Just saw it on CNBC after hours down 11% raising more money.

 

I promise to never buy more carnival if I can ever get out of these last shares. I had a gob i bought for the dividend.  ...we know how that went. I'll just keep 100 shares and never look back I keep hoping. 

 

Liking a product is not a reason to buy that companies stock.  I have bought Honda vehicles exclusively for over 30 years.  No way on earth I would ever buy their stock...even if they offered free oil changes and tire rotations to shareholders!

[ontheweb]

15 minutes ago, BlerkOne said:

That is exactly what they are doing. Pushing short term debt out a few years.

But the debt is still there. That is only postponing it.

[mz-s]

1 hour ago, ontheweb said:

But the debt is still there. That is only postponing it.

 

"That's for future Carnival to worry about"

[BlerkOne]

1 hour ago, ontheweb said:

But the debt is still there. That is only postponing it.

The debt is there. Smart debt management is what will allow Carnival to survive. 

 

[ngrund]

2 hours ago, JT1962 said:

They have some tough times over the next few years with all of the debt they took on. Unless they are using the new debt to pay down previous debt coming due or at higher rates, more debt isn’t good.

from the press release- The Company expects to use the net proceeds of the offering to make principal payments on debt and for general corporate purposes.

 

The new issue is also convertible debt, so Carnival has the option of settling with either cash or stock in 2027

 

What I have not seen is the interest rate on the issue-does anyone know?

[JT1962]

20 hours ago, ngrund said:

 

 

What I have not seen is the interest rate on the issue-does anyone know?

 5.75% per the article at the link below. 
 

https://www.marketwatch.com/amp/story/carnival-stock-dives-after-private-sale-of-1-billion-in-convertible-debt-11668611848

[ngrund]

2 hours ago, JT1962 said:

 5.75% per the article at the link below. 
 

https://www.marketwatch.com/amp/story/carnival-stock-dives-after-private-sale-of-1-billion-in-convertible-debt-11668611848

thanks, at least the issue is at a decent rate

[tidecat]

2 hours ago, ngrund said:

thanks, at least the issue is at a decent rate

There are some other loans that have rate that is at least LIBOR + 3.8%. Right now the 1-year LIBOR rate is over 5%. This may save Carnival some interest the next few years.