Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
MIAMI - Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) has arranged a new $4.5 billion multi-currency revolving credit facility that matures in June 2030, the cruise operator announced today.
The new facility represents a 50% increase over the company’s existing revolving credit arrangement and includes an accordion feature allowing for up to $1.0 billion in additional revolving commitments.
The unsecured credit facility will replace the existing multi-currency revolving credit facility of Carnival Holdings (Bermuda) II Limited, a subsidiary of Carnival Corporation.
"This 50 percent increase in our revolver meaningfully enhances our liquidity, providing opportunities to continue accelerating our debt reduction efforts," said David Bernstein, Chief Financial Officer of Carnival Corporation. This move comes as InvestingPro data shows the company managing $28.4 billion in total debt, with a current ratio of 0.26 indicating tight liquidity conditions.
The new credit arrangement will initially be guaranteed on an unsecured basis by the same subsidiaries that guarantee the company’s senior secured term loan facilities. Carnival Corporation and Carnival plc are entering into the facility as borrowers with a global syndicate of financial institutions, with JPMorgan Chase Bank, N.A. serving as administrative agent.
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.
The information in this article is based on a company press release statement. Carnival’s stock has shown strong momentum with a 42.8% return over the past year, and analysts maintain a bullish outlook. Get comprehensive insights and detailed financial analysis with InvestingPro, which offers exclusive access to advanced metrics and expert research reports.
In other recent news, Carnival Corporation has reported significant developments impacting its financial outlook. The company announced a private offering of $1 billion in senior unsecured notes at an interest rate of 5.875%, maturing in 2031, to refinance existing debt. This move is expected to save over $20 million annually in net interest expenses by redeeming higher-interest notes due in 2026. Additionally, Carnival reported a 38% year-over-year increase in EBITDA for the first quarter, driven by a 7.3% rise in net yields. This has led to an upward revision of its EBITDA guidance for fiscal year 2025.
Analyst firms have taken note of Carnival’s performance, with Stifel raising its price target to $33.00, maintaining a Buy rating due to strong booking trends and expected guidance boosts. HSBC also upgraded Carnival’s stock rating from ’Reduce’ to ’Hold’, raising the price target to $24.00, citing resilient booking trends and debt reduction efforts. UBS has highlighted that cruise lines, including Carnival, are expected to outperform hotels in pricing through 2025 and 2026. These developments suggest a positive trajectory for Carnival amid a challenging global travel environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.