Carnival Corporation & plc has announced its plans to redeem its existing $1.0 billion 10.500% senior unsecured notes due 2030 and launch a new senior unsecured notes offering in an effort to reduce interest expense. The company has commenced a private offering of new senior unsecured notes in an aggregate principal amount of $1.0 billion, expected to mature in 2030, with the intention of refinancing the 2030 unsecured notes.
The redemption of the entire outstanding principal amount of the 2030 unsecured notes is expected to take place on or about February 28, 2025, at a redemption price equal to 100.0% of the principal amount of the 2030 unsecured notes to be redeemed, plus the applicable “make-whole” premium and accrued and unpaid interest to, but excluding, the redemption date. The company plans to fund the redemption using the net proceeds from the notes offering and cash on hand, with the redemption being conditioned on the closing of the notes offering.
The notes are being offered only to qualified institutional buyers in reliance on rule 144a under the Securities Act of 1933, as amended, and outside the United States, only to non-U.S. investors pursuant to Regulation S under the Securities Act.
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.
In its efforts to reduce interest expense, Carnival Corporation & plc is taking proactive steps to refinance its existing debt and optimize its financial strategy. The market has reacted to these announcements by moving the company's shares -1.9% to a price of $25.72. For more information, read the company's full 8-K submission here.
