Carnival Corporation & plc has announced the upsizing and pricing of a $3.0 billion 5.75% senior unsecured notes offering. The company plans to use the proceeds to fully repay borrowings under the senior secured term loan facility. Additionally, the remaining net proceeds, along with cash on hand, will be utilized to redeem $2.4 billion of 5.750% senior unsecured notes due 2027.
The company issued a conditional notice of redemption for the $2.4 billion aggregate principal amount of the 2027 unsecured notes to be redeemed on July 17, 2025. The redemption price will be equal to 100.0% of the principal amount of the 2027 unsecured notes to be redeemed, plus an applicable "make-whole" premium and accrued and unpaid interest to, but excluding, the redemption date.
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 receiving an investment grade rating from two of the three rating agencies. The notes offering is expected to close on July 16, 2025, subject to customary closing conditions.
The notes will pay interest semi-annually at a rate of 5.75% per year and will mature on August 1, 2032. They will be unsecured and fully and unconditionally guaranteed on an unsecured basis by Carnival plc and certain subsidiaries.
It's important to note that the notes are being offered only to qualified institutional buyers and outside the United States to non-U.S. investors. They will not be registered under the Securities Act or any state securities laws.
About Carnival Corporation & plc: 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 -2.17% on the market, and are now trading at a price of $29.31. For more information, read the company's full 8-K submission here.
