10th Feb 2025 11:04
Carnival PLC - Florida-based cruise operator - Closes previously announced private offering of USD2.0 billion of 6.125% of senior unsecured notes due 2023. Says it utilised the net proceeds from the offering, coupled with on-hand cash, to redeem USD2.03 billion 10.375% senior priority notes due 2028 of Carnival Holdings (Bermuda) Ltd. Says this lead to an over 4% reduction in interest expense. Adds that the notes offering and redemption of senior priority notes reflects a continuation of its strategy "to reduce interest expense, simplify its capital structure and manage its future debt maturities." Anticipates the transaction will reduce annual net interest expense by over USD80 million and says the indenture governing the notes has investment grade-style covenants.
Notes will pay interest semi-annually on February 15 and August 15 each year, beginning this year, says the firm, at a rate of 6.125% per year. Adds that they will be unsecure and mature by February 15 2033.
Current stock price: 1,945.00 pence, down 0.7% on Monday morning in London
12-month change: up 74%
By Christopher Ward, Alliance News reporter
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