Carnival Corporation & plc announced that Carnival Corporation priced its private offering of $1.0 billion aggregate principal amount of 5.750% senior unsecured notes due 2030. The Company expects to use the net proceeds from the Notes Offering, together with cash on hand, to redeem the Company’s $1.0 billion 10.500% senior unsecured notes due 2030.
The announcement reads inter alia:
“The Notes Offering and the redemption of the 2030 Unsecured Notes are a continuation of the Company’s strategy to reduce interest expense. The Company expects to reduce net annual interest expense by approximately $45 million as a result of the transaction. In addition, the indenture that will govern the Notes will have investment grade-style covenants.
The Notes Offering is expected to close on February 28, 2025, subject to customary closing conditions. The previously announced redemption of the 2030 Unsecured Notes is expected to occur on February 28, 2025, and is conditioned on the closing of the Notes Offering.
The Notes will pay interest semi-annually on March 15 and September 15 of each year, beginning on September 15, 2025, at a rate of 5.750% per year. The Notes will be unsecured and will mature on March 15, 2030. The Notes will be fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by Carnival plc and certain of the Company’s and Carnival plc’s subsidiaries that also guarantee our first-priority secured indebtedness, certain of our other unsecured notes and our convertible notes”.