Carnival Corp has priced its private offering of $1 bill aggregate principal amount of 5.750% senior unsecured notes due 2030.
The company said that it expected to use the net proceeds from the offering, together with cash on hand, to redeem its $1 bill 10.500% senior unsecured notes, due 2030.
This offering and the redemption of the 2030 unsecured notes are a continuation of Carnival’s strategy to reduce interest expense, the company said.
Carnival expects to reduce net annual interest expense by around $45 mill as a result of the transaction. In addition, the indenture that will govern the notes will have investment grade-style covenants.
The offering is expected to close on 28th February, 2025, subject to customary closing conditions, while the redemption of the 2030 unsecured notes is expected to occur on the same date, and is conditional on the closing of the latest offering.
The notes will pay interest semi-annually on 15th March and 15th September of each year, beginning this September, at a rate of 5.750% per year.
They will be unsecured and will mature on 15th March, 2030. They will be fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by Carnival and certain subsidiaries that also guarantee the company’s first-priority secured debt, certain of the other unsecured notes and the convertible notes.
