Carnival Corporation & PLC Reduces Interest Expenses

By Bobby Samwell • Saturday, March 01 15:15 • Permanent Link

Carnival Corporation & PLC recently closed a $1.0 billion 5.750% senior unsecured notes offering and used the proceeds, along with available cash, to redeem $1.0 billion 10.500% senior unsecured notes due 2030. This move is expected to result in a significant reduction in interest expenses of over 4.5% and is estimated to decrease net annual interest expense by approximately $45 million.

The newly issued notes will pay interest semi-annually at a rate of 5.750% and will mature on March 15, 2030. They are fully and unconditionally guaranteed on a senior unsecured basis by Carnival PLC and certain subsidiaries. The offering was made to qualified institutional buyers and non-U.S. investors.

This transaction is part of Carnival Corporation & PLC's ongoing strategy to reduce interest expenses and is expected to result in significant interest savings. As a result of these announcements, the company's shares have moved 1.8% on the market, and are now trading at a price of $23.93. If you want to know more, read the company's complete 8-K report here.

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