Carnival Corporation & plc, a prominent global cruise company, has announced the commencement of a private offering of new senior unsecured notes in the aggregate principal amount of $2.0 billion, expected to mature in 2032. The purpose of this offering is to fully repay borrowings under Carnival Corporation's first-priority senior secured term loan facility maturing in 2028, with the expectation to manage future debt maturities and reduce secured debt.
The company intends to utilize the remaining proceeds and cash on hand to partially redeem its 5.750% senior unsecured notes due 2027, with an expected redemption amount of $1.4 billion, subject to change based on factors such as the final size of the notes offering. This action is contingent upon the closing of the notes offering and is anticipated to feature investment grade-style covenants within the indenture governing the notes.
It's important to note that this press release does not serve as a notice of redemption with respect to the 2027 unsecured notes. The offering is structured to be available exclusively to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and, outside the United States, to non-U.S. investors under Regulation S of the Securities Act.
Furthermore, it is emphasized that the notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.
As of now, this press release does not constitute an offer to sell or the solicitation of an offer to purchase the notes or any other securities, nor does it constitute an offer, solicitation, or sale in any state or jurisdiction in which such offering, solicitation, or sale would be unlawful.
Carnival Corporation & plc is recognized as the largest global cruise company and among the largest leisure travel companies, boasting 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. As a result of these announcements, the company's shares have moved -3.1% on the market, and are now trading at a price of $29.03. For the full picture, make sure to review CARNIVAL CORP's 8-K report.
