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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.
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