This chapter explores Carnival's announcement of $550 million in US dollar notes and €400 million in second lien notes, analyzing the implications of its debt agreements. It delves into concerns over cash burn, passenger refunds, and potential bankruptcy ramifications amidst ongoing pandemic challenges.
The Covenants and Americas Core Credit teams discuss Carnival’s new second lien notes, focusing on a mechanism that could cause a portion of the new notes to become unsecured.
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