Carnival announces senior unsecured notes pricing

2022-05-27T17:52:07+00:00 May 27th, 2022|Finance|

Carnival Corp has priced the private offering of $1 bill aggregate principal amount of 10.5% senior unsecured notes, due 2030.

The offering was due to close on 25th May, 2022, subject to customary closing conditions.

Interest will be paid semi-annually on 1st June and 1st December each year, beginning 1st December, 2022, at a rate of 10.5% per year and are callable on 1st June, 2025.

The notes will be unsecured and will mature on 1st June, 2030.

They 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 own or operate vessels and material intellectual property and that guarantee certain of the company’s other debt, including its first-priority secured and second-priority secured debt.

Carnival expects to use the net proceeds of the offering to make scheduled principal payments on debt during fiscal 2023 and for general corporate purposes, including, without limitation, making repayments of its debt, the financing or refinancing of a portion of the purchase price, rental payments, costs and expenses related to certain of its current and future property, plant and equipment (including leased assets and vessels) and their maintenance, repair, replacement and improvements, as well as any other payments related to its vessels’ ready-for-sea costs, in each case to the extent such amounts are not covered by the company’s existing and future export credit facilities, Carnival said.

PJT Partners is serving as independent financial advisor to Carnival Corp.