Carnival to refinance debt with new $2 billion notes offering

Published 28/01/2025, 15:04
Carnival to refinance debt with new $2 billion notes offering

MIAMI - Carnival Corporation (LON:CCL) & plc (NYSE/LSE: CCL; NYSE: CUK), the world's largest cruise operator, announced on Monday its plans to refinance a portion of its debt. The company intends to initiate a private offering of $2.0 billion in senior unsecured notes, maturing in 2033, to replace its existing $2.03 billion 10.375% senior priority notes due in 2028.

The move is aimed at reducing the company's interest expenses, simplifying its capital structure, and managing future debt maturities. The new notes will be governed by investment grade-style covenants, indicating a focus on maintaining a solid financial foundation.

Carnival (NYSE:CCL)'s subsidiary, Carnival Bermuda, has issued a conditional notice of redemption for the full outstanding principal amount of the senior priority notes, with a redemption date set for on or about February 7, 2025. The redemption price is set at 100.0% of the principal amount, plus an applicable "make-whole" premium and accrued unpaid interest up until the redemption date.

The company plans to fund this redemption through the net proceeds of the notes offering, supplemented by cash on hand. However, the redemption is contingent upon the successful closing of the notes offering.

The new notes offering will be available exclusively to qualified institutional buyers under Rule 144A of the Securities Act of 1933, and to non-U.S. investors under Regulation S. These notes will not be registered under the Securities Act or any state securities laws, and, as such, may not be offered or sold in the United States absent registration or an exemption from registration requirements.

This press release does not serve as a notice of redemption for the senior priority notes, nor does it constitute an offer to sell or a solicitation of an offer to purchase the new notes or any other securities.

Carnival Corporation & plc operates a portfolio of leading cruise lines, including AIDA Cruises, Carnival Cruise Line, and Princess Cruises, and has been working to navigate the financial challenges posed by the global pandemic and other market conditions.

The company's forward-looking statements, as per the press release, are subject to risks and uncertainties, and actual results could differ materially due to various factors, including geopolitical events, pandemics, changes in fuel prices, and currency exchange rates.

This news is based on a press release statement from Carnival Corporation & plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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