Carnival Corporation & plc has announced the closing of a $1.25 billion 5.125% senior unsecured notes offering. The proceeds from this offering, combined with cash on hand, will be used to redeem all of the outstanding 6.000% senior unsecured notes due in 2029.
The company issued a notice of redemption for all of the $2.0 billion aggregate principal amount of its 6.000% senior unsecured notes due in 2029 to be redeemed on November 1, 2025, at a redemption price equal to 101.500% of the principal amount of the 2029 unsecured notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The company will fund the redemption using the proceeds from the notes offering and cash on hand.
The notes from the recent offering will pay interest semi-annually on May 1 and November 1 of each year, beginning on May 1, 2026, at a rate of 5.125% per year. They will mature on May 1, 2029. The notes will be unsecured and fully and unconditionally guaranteed on a senior unsecured basis by Carnival plc and certain subsidiaries.
The company's strategy behind the notes offering and the redemption of the 2029 unsecured notes is to reduce interest expense. The indenture that governs the notes has investment grade-style covenants.
The notes were offered only to qualified institutional buyers in reliance on rule 144a under the securities act of 1933, as amended, and outside the United States, only to non-U.S. investors pursuant to regulation s under the securities act.
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. The market has reacted to these announcements by moving the company's shares -0.41% to a price of $28.84. For the full picture, make sure to review CARNIVAL CORP's 8-K report.
