Carnival Corporation Closes $1.25 Billion Notes Offering

By Hao Liu • Thursday, October 16 06:06 • Permanent Link

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 outstanding 6.000% senior unsecured notes due in 2029. The company issued a notice of redemption for all $2.0 billion 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 offering will pay interest semi-annually on May 1 and November 1 of each year, starting on May 1, 2026, at a rate of 5.125% per year. They will mature on May 1, 2029, and will be unsecured and fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally, by Carnival plc and certain subsidiaries. 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-US investors pursuant to regulation S under the securities act. The notes were not, and 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. This press release does not constitute a notice of redemption with respect to the 2029 unsecured notes.

The completion of this offering and the redemption of the 2029 unsecured notes are part of the company's strategy to reduce interest expense. This move signifies the company's effort to optimize its financial position and manage its debt obligations effectively. 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 $28.96. Check out the company's full 8-K submission here.

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