Carnival Corporation & plc Prices $2.0 Billion Senior Unsecured Notes Offering for Refinancing and Interest Expense Reduction

On January 28, 2025, Carnival Corporation & plc made a significant financial announcement regarding the pricing of a private offering of $2.0 billion aggregate principal amount of 6.125% senior unsecured notes due 2033. This move is aimed at refinancing and reducing interest expenses for the company.

The notes offering involves Carnival Corporation issuing the $2.0 billion in senior unsecured notes with an interest rate of 6.125% per year. The company intends to use the net proceeds from this offering, along with existing cash reserves, to redeem $2.03 billion of 10.375% senior priority notes due 2028 of Carnival Holdings (Bermuda) Limited.

This initiative is part of Carnival’s broader strategy to streamline its capital structure, decrease interest expenses, and manage upcoming debt maturities. By restructuring its debt profile, the company anticipates a reduction of over $80 million in net annual interest expense. Furthermore, the notes will be accompanied by investment grade-style covenants, offering additional security.

The offering is scheduled to close on February 7, 2025, subject to customary closing conditions. The redemption of the Senior Priority Notes is contingent on the completion of the notes offering and is expected to occur on the same day.

The newly issued notes will pay interest semi-annually starting from August 15, 2025, at a rate of 6.125% per year, maturing on February 15, 2033. Carnival plc and selected subsidiaries of Carnival Corporation will provide full, unconditional guarantees for these unsecured notes.

Investors and the public are advised that this announcement does not serve as a redemption notice for the Senior Priority Notes. The offering is exclusively targeted towards qualified institutional buyers under Rule 144A of the Securities Act of 1933 and non-U.S. investors subject to Regulation S under the Securities Act.

As Carnival Corporation & plc continues to navigate financial waters, further updates and details will be shared with stakeholders and the investment community as necessary. For comprehensive information, the press release attached as Exhibit 99.1 to the Form 8-K filing can be referred to.

Please note that forward-looking statements are inherent in this announcement, outlining risks, uncertainties, and assumptions. Interested parties are urged to exercise caution and diligence while considering future prospects and developments related to Carnival Corporation & plc’s financial undertakings.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Carnival Co. &’s 8K filing here.

Carnival Co. & Company Profile

Carnival Plc operates as a global cruise and vacation company. The firm offers holiday and vacation products to a customer base that is broadly varied in terms of cultures, languages and leisure-time preferences. It operates through the North America and Australia (NAA), Europe and Asia (EA), Cruise Support, and Tour and Other segments.