Carnival Corporation & plc has announced the arrangement of a new $4.5 billion multi-currency revolving credit facility, which represents a 50% increase from the existing facility. The new revolver, maturing in June 2030, also includes an accordion feature, allowing for up to $1.0 billion of additional revolving commitments.
The company's Chief Financial Officer, David Bernstein, highlighted that this increase in the revolver will significantly enhance liquidity and provide opportunities to accelerate debt reduction efforts. He also noted that securing the upsize and extension to the revolver on more favorable terms reflects confidence in the company's continued performance and is a milestone toward rebuilding its financial strength.
The new revolver is unsecured and initially guaranteed on an unsecured basis by the same subsidiaries that guarantee the company’s senior secured term loan facilities. It involves Carnival Corporation and Carnival plc as borrowers, and a global syndicate of financial institutions and JPMorgan Chase Bank, N.A., as the administrative agent.
Carnival Corporation & plc, known as the largest global cruise company, operates 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 the company's confidence in its business improvement and strong banking relationships, as it continues to navigate the evolving landscape of the leisure travel industry. 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. For the full picture, make sure to review CARNIVAL CORP's 8-K report.
