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Shares of Carnival Corp. (NYSE:CCL) are trading more than 13% lower in pre-market Wednesday trading with the stock set to wipe off gains from recent days.
Carnival stock is under pressure today after the British-American cruise operator announced plans to raise more debt. The company launched a private offering of $1 billion in convertible senior notes due in 2027.
The offering is a part of Carnival’s 2024 refinancing plan.
“The Company expects to use the net proceeds of the offering to make principal payments on debt and for general corporate purposes,” Carnival said in a press release.
Based on yesterday’s closing price, Carnival stock price was down about 45% year-to-end (YTD) after shares staged a 70%+ rally in the last 4 weeks on improving risk sentiment.
