WS News
21 May 2025, 20:32
Carnival Corporation Closes $1 Billion Notes Offering to Refinance Debt and Cut Interest Costs
Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) has successfully closed a $1 billion private offering of 5.875% senior unsecured notes due 2031. The proceeds will be used to fully redeem $993 million of its 7.625% senior unsecured notes due 2026, with the redemption scheduled for May 22, 2025.
This refinancing effort is expected to reduce Carnival’s net interest expense by over $20 million through the original maturity of the 2026 notes, especially after a $350 million partial redemption earlier this year. The newly issued notes include investment-grade-style covenants and will be unsecured, maturing on June 15, 2031. Interest payments will be made semi-annually beginning December 15, 2025.
The notes are fully and unconditionally guaranteed on a senior unsecured basis by Carnival plc and certain subsidiaries. They were sold only to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S.
This move is part of Carnival’s broader strategy to lower debt servicing costs and manage upcoming maturities more efficiently. The company emphasized that this press release does not constitute an offer or solicitation to sell the notes.
Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) has successfully closed a $1 billion private offering of 5.875% senior unsecured notes due 2031. The proceeds will be used to fully redeem $993 million of its 7.625% senior unsecured notes due 2026, with the redemption scheduled for May 22, 2025.
This refinancing effort is expected to reduce Carnival’s net interest expense by over $20 million through the original maturity of the 2026 notes, especially after a $350 million partial redemption earlier this year. The newly issued notes include investment-grade-style covenants and will be unsecured, maturing on June 15, 2031. Interest payments will be made semi-annually beginning December 15, 2025.
The notes are fully and unconditionally guaranteed on a senior unsecured basis by Carnival plc and certain subsidiaries. They were sold only to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S.
This move is part of Carnival’s broader strategy to lower debt servicing costs and manage upcoming maturities more efficiently. The company emphasized that this press release does not constitute an offer or solicitation to sell the notes.
