Carnival Sells $2 Billion Bonds Yielding 10.75% for Refinancing

Carnival Corp. sold $2 billion of bonds at a 10.75% yield, the latest borrower to pay up to refinance a heavy debt load as fears of a recession mount.

The cruise line operator increased the deal to $2 billion from $1.25 billion earlier, and priced the debt at the lower end of yields floated to investors -- a sign of strong demand. The price is down from earlier talks as high as 11.5%. The bonds, which pay a coupon of 10.375%, were sold at 98.465 cents on the dollar.

Carnival borrowed heavily through the pandemic as the travel industry came ...