Carnival Delays Pandemic Debt Reckoning by Refinancing Bonds

Oct. 4, 2021, 5:24 PM

Carnival Corp.’s path to recovery from the pandemic is still fraught with uncertainties. But you’d barely notice that by looking at credit markets.

The cruise-line operator is on track to sell debt yielding around 4% to refinance bonds, issued during the worst of the Covid-19 lockdowns last year, that pay almost three times as much.

Carnival’s ability to refinance cheaply shows both investors’ optimism for the cruise industry and the dearth of opportunities in a market still buoyed by liquidity.

While the Miami-based company said it expects to return its full fleet to the seas by the spring of 2022, ...

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