Carnival Stock Price Rises on Tuesday on Speculation of New Debt Agreement

    Author Jowi KwasuPosted on Categories Investing NewsTags , , , , , , , , , , , , , , , , , , , , , , ,
    Carnival-Stock

    Carnival stock closed Tuesday up at $8.08 at close: 04:00 PM EDT

    Following the announcement of the sale of more than $1 billion in junk bonds, shares of Carnival Corp. (NYSE:CCL) increased by double digits on Tuesday. Prior to Tuesday’s market opening, the business announced that it had started a private offering of unsecured Senior Priority Notes with an aggregate principal amount of $1.25 billion due in 2028. These notes will have a yield of more than 11%, according to Bloomberg.

    Carnival added in a regulatory filing that “the Company and its subsidiaries will contribute 12 unencumbered vessels to the Issuer in connection with the offering of the Senior Priority Notes, with each of these vessels continuing to be operated under one of the Company’s, Carnival plc’s, or one of their subsidiaries’ brands.”

    Despite the sizable yield, the increased liquidity seemed to boost confidence in the stock, combined with a broader risk-on attitude that helped key indices. Carnival Corp. (NYSE:CCL) stock increased 11.94% on Tuesday, outpacing the S&P 500 as a whole. The cruise operator has had a run on the day that continues a gain of more than 20% over the previous week. Additionally, big gains on the day came from Royal Caribbean (NYSE:RCL) and Norwegian Cruise Line Holdings (NYSE:NCLH).

    Cruise line positions: Carnival stock and others

    With shares of Royal Caribbean (NYSE:RCL) up 5.4% this morning (as of 9:50 a.m. ET), Norwegian Cruise Line Holdings (NYSE:NCLH) up 6.7%, and Carnival Corporation (NYSE:CCL) (CUK) topping the field with a 10% gain, the stock market’s Monday boom is continuing into Tuesday.

    Additionally, both Norwegian Cruise Line Holdings and Royal Caribbean are about to release their quarterly earnings reports. While any earnings report has the ability to miss, it also has the potential to beat — and investors could be hoping for the nicer scenario for the former on Oct. 27 and the latter just a few days later on Nov. 1.

    Carnival Stock And Earning Expectations In Q4

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    Author Jowi Kwasu
    About the author: I'm a financial freelance writer keen on the latest market developments which i articulate with writing stock updates, press releases and investor news. As a person i live by the code of a sustainable human existence and a carbon neutral universe. When off work, i spend time reading non-fiction books, flying drones, and outdoor cycling.