Carnival Corporation & plc has announced the upsizing and pricing of a $3.0 billion 5.75% senior unsecured notes offering. The company has increased the aggregate principal amount of notes to be issued to $3.0 billion. The proceeds from the offering will be used to fully repay the borrowings under Carnival Corporation's first-priority senior secured term loan facility maturing in 2028. Additionally, the remaining net proceeds, along with cash on hand, will be used to redeem $2.4 billion of the company’s 5.750% senior unsecured notes due 2027.
The notes offering is a part of the company's strategy to deleverage, manage its future debt maturities, and reduce secured debt. Upon completion of this transaction, the company’s remaining senior secured debt will be $3.1 billion, all of which has security fall away provisions upon two of the three rating agencies providing the company with an investment grade rating. The notes will pay interest semi-annually at a rate of 5.75% per year and will mature on August 1, 2032.
The transaction is expected to close on July 16, 2025, subject to customary closing conditions. The notes will be offered only to qualified institutional buyers and non-U.S. investors. It is important to note 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.
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, Princess Cruises, and Seabourn. As a result of these announcements, the company's shares have moved -1.11% on the market, and are now trading at a price of $28.985. For the full picture, make sure to review CARNIVAL CORP's 8-K report.
