Carnival to redeem $993 million notes, issues new offering

MIAMI - Carnival Corporation (LON:CCL) & plc (NYSE/LSE:CCL; NYSE:CUK), the world’s largest cruise operator, announced today its plan to refinance a significant portion of its debt. The company has commenced the private offering of $1 billion in new senior unsecured notes with a 2031 maturity date, aimed at refinancing its current $993 million senior unsecured notes due in 2026.

The existing notes carry an interest rate of 7.625%, and the company’s move is expected to reduce its interest expenses and better manage its future debt maturities. The new notes will not be registered under the Securities Act or any state securities laws and will be available only to qualified institutional buyers and non-U.S. investors.

Carnival (NYSE:CCL) has issued a conditional notice of redemption for the full outstanding principal amount of the 2026 notes, which is scheduled to be redeemed on or about May 22, 2025. The redemption price is set at 100.0% of the principal amount plus accrued and unpaid interest until the redemption date. The completion of this redemption is contingent upon the closing of the new notes offering.

The company’s press release also highlighted that the indenture governing the new notes is expected to contain investment grade-style covenants, which could potentially provide more favorable borrowing terms and reflect the company’s creditworthiness.

Carnival Corporation & plc oversees a portfolio of renowned cruise lines, including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn.

This financial maneuver is part of Carnival’s broader strategy to manage its liquidity and debt profile, which is crucial for its operations and long-term growth. The cruise industry has faced significant challenges in recent years, and Carnival’s efforts to optimize its financial structure are critical in navigating the evolving market landscape.

As per the company’s cautionary note, the forward-looking statements in the press release are subject to risks and uncertainties, and actual results could differ materially from those projected.

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

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