Carnival Co. & plc Announces Pricing of $1.0 Billion Senior Unsecured Notes Offering for Refinancing and Interest Expense Reduction

Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced on February 18, 2025, the pricing of a private offering of $1.0 billion aggregate principal amount of 5.750% senior unsecured notes due 2030. The purpose of this offering is aimed at refinancing and reducing interest expenses for the company.

The net proceeds from the offering, in conjunction with existing cash reserves, will be utilized to redeem the company’s $1.0 billion 10.500% senior unsecured notes due in 2030. This strategic move is part of the company’s ongoing efforts to minimize interest costs. It is anticipated that this transaction will result in an approximate decrease of $45 million in net annual interest expenses for Carnival Corporation.

The notes issued are expected to close on February 28, 2025, subject to customary closing conditions. The redemption of the 2030 Unsecured Notes is also set to occur on the same day and is contingent on the completion of the Notes Offering.

With semi-annual interest payments scheduled on March 15 and September 15 each year starting from September 15, 2025, at a rate of 5.750% per annum, these unsecured notes will mature on March 15, 2030. Furthermore, the notes will be fully and unconditionally guaranteed on an unsecured basis by both Carnival plc and specific subsidiaries under the company’s first-priority secured indebtedness.

It is important to note that the press release does not serve as a notice of redemption regarding the 2030 Unsecured Notes. The offering of these notes is restricted to qualified institutional buyers under Rule 144A of the Securities Act and, outside the U.S., to non-U.S. investors in accordance with Regulation S.

Carnival Corporation & plc, as a leading global cruise company, consists of various esteemed cruise lines including AIDA Cruises, Carnival Cruise Line, Costa Cruises, and Princess Cruises, among others.

This forward-looking move by Carnival Corporation aligns with its continual financial strategies. The reduction in interest expenses and the incorporation of investment grade-style covenants in the notes’ indenture stand as significant aspects of this financial development.

Source: Carnival Corporation & plc Press Release dated February 18, 2025.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Carnival Co. &’s 8K filing here.

Carnival Co. & Company Profile

Carnival Plc operates as a global cruise and vacation company. The firm offers holiday and vacation products to a customer base that is broadly varied in terms of cultures, languages and leisure-time preferences. It operates through the North America and Australia (NAA), Europe and Asia (EA), Cruise Support, and Tour and Other segments.