Carnival Corporation & plc has just announced the successful arrangement of a new $4.5 billion multi-currency revolving credit facility, which represents a 50 percent increase in its revolving capacity. The new facility, which matures in June 2030, will replace the existing multi-currency revolving credit facility of Carnival Holdings (Bermuda) II Limited. This new revolver also includes an accordion feature, allowing for up to $1.0 billion of additional revolving commitments.
Carnival's Chief Financial Officer, David Bernstein, noted that this significant increase in their revolver enhances their liquidity and provides opportunities to continue accelerating their debt reduction efforts. The new revolver, secured on more favorable terms, reflects confidence in the company's continued performance and is seen as a milestone towards rebuilding its financial strength.
The new revolver will be unsecured and initially guaranteed on an unsecured basis by the same subsidiaries of the company that guarantee the company’s senior secured term loan facilities. Carnival Corporation and Carnival plc, each as a borrower, are entering into the new revolver with a global syndicate of financial institutions and JPMorgan Chase Bank, N.A., as administrative agent.
Carnival Corporation & plc is the largest global cruise company, and among the largest leisure travel companies, with a portfolio of world-class cruise lines including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn.
This announcement reflects Carnival's continued business improvement and strong banking relationships, as well as its commitment to fortifying its financial position for the future. As a result of these announcements, the company's shares have moved -1.26% on the market, and are now trading at a price of $23.57. Check out the company's full 8-K submission here.
