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Carnival Corporation (LON:CCL), one of the largest cruise operators with a market capitalization of $23.35 billion, has announced the redemption of a portion of its senior unsecured notes. Today, the company disclosed its decision to redeem $350 million of its outstanding $1.4 billion 7.625% senior unsecured notes due 2026. This redemption is scheduled for May 1, 2025, and will be carried out at a redemption price of 100% of the principal amount, in addition to accrued and unpaid interest up to but not including the redemption date.
This financial maneuver is part of Carnival (NYSE:CCL)’s broader strategy to reduce its debt and lower interest expenses. The redemption reflects the company’s ongoing efforts to improve its balance sheet and financial health following the challenges posed by the global pandemic and the subsequent recovery of the travel and tourism industry. According to InvestingPro data, the company currently maintains a total debt of $28.4 billion with a debt-to-equity ratio of 3.09, highlighting the importance of debt management strategies.
The redeemed notes were part of a larger issuance that has been a significant component of Carnival’s capital structure. By reducing the principal amount of these high-interest-bearing notes, the company aims to decrease its overall interest costs. Despite its debt levels, InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with strong revenue generation of $25.42 billion in the last twelve months. InvestingPro subscribers have access to over 10 additional key financial metrics and insights about CCL’s debt management strategy.
It should be noted that this report is based on information provided in a recent SEC filing and does not constitute a notice of redemption for the 2026 Unsecured Notes. Carnival Corporation has made it clear that this current report is meant to comply with Regulation FD and should not be considered as "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, nor should it be deemed incorporated by reference into any of the company’s other filings, irrespective of any general incorporation language.
Carnival Corporation, along with its counterpart Carnival plc, is listed on the New York Stock Exchange with the trading symbols CCL and CUK, respectively. The company has dual headquarters located in Miami, Florida, and Southampton, United Kingdom (TADAWUL:4280), reflecting its international operations and clientele. With an EBITDA of $6.38 billion in the last twelve months, CCL demonstrates strong operational performance despite its current liquidity challenges, as indicated by its current ratio of 0.26.
In other recent news, Carnival Corporation reported record first-quarter results for 2025, with a 7.47% increase in revenue to $5.8 billion. The company saw ticket revenue rise by 5.5% year-over-year, reaching $3.83 billion, and onboard and other revenues increased by 11.1% to $2 billion. In addition, Carnival’s shareholders approved all board nominations and proposals during their recent annual meetings, reflecting confidence in the company’s governance and strategic direction. Morgan Stanley (NYSE:MS) revised its rating on Carnival from Underweight to Equalweight, citing a balanced risk-reward outlook, although it lowered the price target to $21. Meanwhile, BNP Paribas (OTC:BNPQY) Exane initiated coverage with an Outperform rating and a $26 price target, highlighting the potential revenue impact of Carnival’s new private island, Celebration Key. Tigress Financial Partners also raised its price target to $32, maintaining a Buy rating due to strong demand and robust booking volumes. S&P upgraded Carnival’s credit rating to BB+, acknowledging the company’s efforts in debt reduction and balance sheet strengthening. Carnival’s strategic initiatives, including fleet expansion and land-based property development, are expected to drive future growth.
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