It is offering 57mln shares of its common stock at a price of US$18.05 each, a 3% premium to Tuesday’s closing price of US$17.57, to a limited number of holders of its 5.75% notes due 2023.
The cruise giant will use the proceeds to buy back from these holders US$499mln principal amount of its notes in privately negotiated transactions, while US$627mln will remain outstanding.
As a result, Carnival will not receive any cash from these transactions but will have to pay the relevant fees and expenses.
The move is not expected to impact the travel firm’s cash position.
Shares shed 2% to 1,190p on Wednesday morning.