Carnival Corp increases senior priority notes issue

2022-10-28T13:36:35+00:00 October 28th, 2022|Finance|

Carnival Corp’s subsidiary, Carnival Holdings (Bermuda) Limited has priced the private offering of $2.03 bill aggregate principal amount of 10.375% Senior Priority Notes, due 2028.

The total amount of senior priority notes to be issued was increased to $2.03 bill from $1.25 bill recently, due to strong investor demand.

Carnival said that it expects to initially use the offering’s net proceeds to repay amounts drawn under the revolving credit facility, which remains available for future principal payments on debt and for general corporate purposes.

The notes will pay interest semi-annually on 1st May and 1st November of each year, beginning on 1st May, 2023, at a rate of 10.375% per year, are callable beginning 1st May, 2025 and priced at 98.465% of their face value.

They will mature on 1st May, 2028 and will be unsecured but will be fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by the company, Carnival plc and certain of the company’s and Carnival plc’s subsidiaries that guarantee substantially all of its other debt.

The offering was expected to close on 25th October 2022, subject to customary closing conditions.

In connection with the offering, the company and its subsidiaries will contribute 12 unencumbered vessels to the issuer, with each of these vessels continuing to be operated under one of the company’s, Carnival plc’s or one of their subsidiaries’ brands.

PJT Partners served as independent financial advisor to Carnival Corp.