Carnival launches $1.25 billion notes offering to refinance debt

MIAMI - Carnival Corporation & plc (NYSE/LSE:CCL; NYSE:CUK) announced Tuesday it has commenced a private offering of $1.25 billion in new senior unsecured notes expected to mature in 2029.

The cruise operator plans to use the proceeds from the offering, combined with cash on hand, to fully redeem its existing $2.0 billion 6.000% senior unsecured notes due 2029. The company expects this refinancing to reduce its interest expenses, a crucial move given its total debt of $27.86 billion and current ratio of 0.34. According to InvestingPro analysis, the company’s short-term obligations currently exceed its liquid assets.

According to the announcement, the new notes will feature investment grade-style covenants and will be offered exclusively to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. investors through Regulation S.

The notes will not be registered under the Securities Act or state securities laws, meaning they cannot be offered or sold in the United States without registration or an applicable exemption from registration requirements.

Carnival Corporation & plc, which describes itself as the largest global cruise company, operates a portfolio of cruise lines including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises and Seabourn.

The announcement was made in a press release statement issued by the company.

In other recent news, Carnival Corporation reported third-quarter earnings that surpassed Wall Street expectations, with an earnings per share of $1.43 compared to the forecasted $1.32. The company also reported a revenue of $8.2 billion, slightly exceeding the anticipated $8.09 billion. Carnival raised its full-year guidance for 2025, reflecting confidence in its financial outlook. Analysts from Bernstein SocGen Group maintained their Market Perform rating with a $26.00 price target, while Stifel reiterated a Buy rating and set a $38.00 price target, indicating potential for future growth. Goldman Sachs also maintained a Buy rating and a $37.00 price target, highlighting the company’s traditionally conservative forecasting approach. Despite strong earnings, some analysts, such as Mizuho, pointed out concerns about cost estimates for 2026 and market pricing issues. These mixed reactions from the market were attributed to unexpected cost pressures and other financial concerns. Overall, Carnival’s recent earnings report has drawn a range of responses from analysts and investors alike.

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