Covenants: Initial Thoughts on Carnival's Newly Announced 2L Note Issuance (July 14, 2020)

Dive into the intricacies of Carnival's $550 million and €400 million second lien notes amidst a challenging cruise industry landscape. Discussions revolve around the implications for unsecured creditors and how fluctuating collateral values could complicate bankruptcy proceedings. Discover the mechanisms that could potentially re-secure parts of this new debt and the strategic maneuvers that could impact the classification of 1L and 2L notes. Plus, insights into how a $2 billion first lien term loan reshapes the dynamics for existing lenders.