PANAMA (dpa-AFX) - Carnival Corporation & plc (CCL, CUK, CCL.L) announced that Carnival Corporation priced its private offering of $1.0 billion aggregate principal amount of 5.875% senior unsecured notes due 2031.
The company expects to use the net proceeds from the Notes Offering to redeem the Company's $993 million 7.625% senior unsecured notes due 2026.
The Notes Offering and the redemption of the 2026 Unsecured Notes are a continuation of the Company's strategy to reduce interest expense and manage its future debt maturities.
The company expects to reduce net annual interest expense by over $20 million through the scheduled maturity date of the 2026 Unsecured Notes as a result of the transaction and its partial redemption of $350 million of the 2026 Unsecured Notes earlier this year. In addition, the indenture that will govern the Notes will have investment grade-style covenants.
The Notes Offering is expected to close on May 21, 2025, subject to customary closing conditions. The previously announced redemption of the 2026 Unsecured Notes is expected to occur on May 22, 2025, and is conditioned on the closing of the Notes Offering.
The Notes will pay interest semi-annually on June 15 and December 15 of each year, beginning on December 15, 2025, at a rate of 5.875% per year. The Notes will be unsecured and will mature on June 15, 2031.
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