Carnival aims to cut debt costs with new $1 billion notes

Published 18/02/2025, 13:34
Carnival aims to cut debt costs with new $1 billion notes

MIAMI - Carnival Corporation (LON:CCL) & plc (NYSE/LSE: CCL; NYSE: CUK), the world’s largest cruise operator, announced the launch of a private offering of new senior unsecured notes valued at $1 billion, with the goal of reducing interest expenses. The new notes, expected to mature in 2030, are part of a refinancing strategy to address the company’s existing $1 billion 10.500% senior unsecured notes due the same year.

The company has issued a conditional notice of redemption for the entire outstanding principal amount of the 2030 Unsecured Notes, to be redeemed at a price equal to 100% of the principal, plus an applicable make-whole premium and accrued interest, on or about February 28, 2025. This redemption is contingent upon the successful closing of the new notes offering, which Carnival (NYSE:CCL) plans to fund with the net proceeds from the offering and available cash.

The indenture governing the new notes is expected to feature investment-grade-style covenants, signaling Carnival’s confidence in its financial stability and creditworthiness. However, the new notes will not be registered under the Securities Act or any state securities laws, therefore, they may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

The offering of the notes will be directed exclusively to qualified institutional buyers in accordance with Rule 144A and to non-U.S. investors outside of the United States under Regulation S.

Carnival Corporation & plc operates a portfolio of cruise lines including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn.

This financial maneuver is part of Carnival’s broader efforts to manage its debt and improve its financial position following the challenges faced by the cruise industry in recent years. As with all forward-looking statements, this plan involves risks and uncertainties, and actual results could differ materially from those anticipated.

The information in this article is based on a press release statement from Carnival Corporation & plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.