Carnival Sells Off $400 Million of 20-Year Bonds

Carnival Corp., the world's largest cruise group, said on Friday it sold $400 million of 20-year convertible bonds.

The Miami-based company's bonds, which include a $100 million overallotment option, carry a coupon of two percent. They are convertible into Carnival common shares at $39.14, a 40 percent premium over the shares' Thursday closing price on the New York Stock Exchange of $27.96.

Carnival said it will use sale proceeds for general corporate purposes.

A convertible bond is a hybrid security that usually offers current income, can be converted into company stock, and whose fortune is closely tied to the underlying stock price.