MIAMI - Carnival Corporation (LON:CCL) & plc (NYSE/LSE:CCL; NYSE:CUK), the world’s largest cruise operator, has successfully closed a $1 billion senior unsecured notes offering at an interest rate of 5.875%, due in 2031. The transaction, completed today, is aimed at refinancing existing debt and reducing interest expenses.
The company has outlined that the proceeds from this offering will be utilized to redeem its $993 million 7.625% senior unsecured notes, which were set to mature in 2026. This redemption is expected to reduce Carnival (NYSE:CCL)’s net interest expense by over $20 million through the original maturity date of the 2026 notes. Earlier in the year, the company had already partially redeemed $350 million of these notes.
The new notes will be unsecured and will pay interest semi-annually on June 15 and December 15, starting from December 15, 2025. They are guaranteed on a senior unsecured basis by Carnival plc and certain subsidiaries of both Carnival Corporation and Carnival plc.
This offering was made only to qualified institutional buyers in accordance with Rule 144A, and to non-U.S. investors under Regulation S of the Securities Act of 1933. These notes have not been registered under the Securities Act or any state securities laws and cannot be offered or sold in the U.S. without registration or an applicable exemption from registration requirements.
Carnival Corporation & plc operates a fleet of cruise ships under brands including AIDA Cruises, Carnival Cruise Line, and Princess Cruises. The company’s decision to refinance part of its debt is part of a broader strategy to manage future debt maturities and reduce interest expenses.
The details provided in this article are based on a press release statement issued by Carnival Corporation & plc.
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