Nucor earnings beat by $0.08, revenue fell short of estimates
MIAMI - Carnival Corporation & plc (NYSE/LSE:CCL; NYSE:CUK) announced Monday it has commenced a private offering of $2 billion in senior unsecured notes, expected to mature in 2032.
According to the company’s press release statement, Carnival plans to use the proceeds to fully repay borrowings under its first-priority senior secured term loan facility maturing in 2028. The cruise operator, which currently carries total debt of $28.65 billion and maintains a current ratio of 0.34, also intends to use the remaining proceeds, along with cash on hand, to partially redeem approximately $1.4 billion of its 5.750% senior unsecured notes due 2027. InvestingPro analysis indicates that short-term obligations exceed liquid assets, making this refinancing particularly significant.
The notes will feature investment grade-style covenants and will only be offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to non-U.S. investors pursuant to Regulation S.
The notes will not be registered under the Securities Act or any state securities laws, which means they cannot be offered or sold in the United States without registration or an applicable exemption from registration requirements.
The partial redemption of the 2027 unsecured notes is contingent upon the closing of the new notes offering, with the final redemption amount subject to change based on the final size of the offering.
Carnival Corporation & plc 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.
In other recent news, Carnival Corporation & plc has been actively managing its financial structure by pricing €1.0 billion in senior unsecured notes at a 4.125% interest rate, aimed at repaying existing loans. The company is continuing its efforts to reduce debt and simplify its capital structure. UBS raised its price target for Carnival to $33 from $30, maintaining a Buy rating, citing potential catalysts like clearing tax risks and outperforming yield growth. Similarly, Stifel increased its price target to $34 from $33, noting strong quarterly performance and positive booking trends for 2026. Carnival’s second-quarter earnings exceeded expectations, with Truist Securities maintaining a Hold rating and a $27 price target, highlighting the company’s solid revenue and cost management. UBS also maintained a $30 price target, acknowledging Carnival’s raised full-year earnings per share guidance and net yield guidance. Despite macroeconomic pressures, Carnival’s outlook remains stable, with Truist noting the company’s favorable foreign exchange impacts and UBS highlighting the impact of additional fourth-quarter cruises on yield. These developments indicate a robust performance for Carnival, as it navigates a complex economic landscape.
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