Carnival Corp Saves $18M in Interest Expenses

By Tamara Parker • Tuesday, January 14 06:03 • Permanent Link

Carnival Corporation & plc recently announced the successful repricing of its senior secured first lien term loan B facilities, resulting in anticipated annualized interest expense savings of approximately $18 million. The repricing transactions involved approximately $700 million of term loans maturing in 2027 and approximately $1.75 billion of term loans maturing in 2028.

The 2027 repriced loans and the 2028 repriced loans now bear interest at a rate per annum equal to SOFR with a 0.75% floor, plus a margin equal to 2.00%. This repricing is part of the company’s ongoing efforts to reduce interest expenses.

Carnival Corporation & plc is the largest global cruise company, with a portfolio of world-class cruise lines including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn.

This announcement reflects the company's commitment to managing its financial obligations efficiently and optimizing its cost structure to drive long-term value for its stakeholders. Following these announcements, the company's shares moved -1.6%, and are now trading at a price of $23.89. If you want to know more, read the company's complete 8-K report here.

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