29th Jan 2025 15:48
(Alliance News) - Carnival Corp & PLC on Wednesday said it has priced a USD2.0 billion offering of 6.125% senior unsecured notes as part of its ongoing efforts to refinance debt and reduce interest expenses.
The Florida-based cruise operator said it will use the proceeds, along with cash on hand, to redeem USD2.03 billion of 10.375% senior priority notes due in 2028, replacing them with lower-interest debt.
Carnival expects the move to cut annual interest expenses by more than USD80 million and simplify its capital structure.
The notes will mature on February 15, 2033, and interest payments will be made semi-annually on February 15 and August 15, beginning in August 2025. The offering is expected to close on February 7, 2025, subject to standard closing conditions.
Carnival said the new notes will be fully and unconditionally guaranteed on an unsecured basis by Carnival and certain subsidiaries. The company also highlighted that the indenture governing the new notes is expected to include investment-grade-style covenants.
Shares in Carnival were up 1.0% at 2,024.00 pence each in London on Wednesday afternoon.
By Eva Castanedo, Alliance News reporter
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