Carnival Corporation & plc Announces Closing of €1.0 Billion 4.125% Senior Unsecured Notes Offering
Rhea-AI Summary
Carnival Corporation (NYSE: CCL) has successfully closed its previously announced private offering of €1.0 billion in senior unsecured notes with a 4.125% interest rate, maturing in 2031. The proceeds will be used to repay borrowings under existing senior secured term loan facilities, including the full repayment of the 2027 Term Loan Facility.
This strategic financial move, combined with a $450.0 million prepayment made on June 27, 2025, demonstrates Carnival's commitment to deleveraging, reducing interest expenses, and simplifying its capital structure. The company is currently one notch away from achieving an investment grade credit rating, and the notes feature investment grade-style covenants.
Positive
- €1.0 billion senior unsecured notes offering successfully closed at favorable 4.125% interest rate
- Strategic deleveraging and simplification of capital structure
- Company approaching investment grade credit rating status
- Recent $450.0 million prepayment demonstrates strong financial management
Negative
- Additional long-term debt commitment through 2031
- Interest payments will impact cash flow annually starting July 2026
News Market Reaction – CCL
In the trading session that priced this news, CCL declined 2.17%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Proceeds from the offering of senior unsecured notes to be used to repay borrowings under senior secured term loan facilities
"We continue to opportunistically access the capital markets," said David Bernstein, Chief Financial Officer. "We are just one notch away from an investment grade credit rating and this successful transaction puts us further down that path."
The Notes will pay interest annually on July 15 of each year, beginning on July 15, 2026, at a rate of
The Notes were offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside
The Notes were not, and will not be, registered under the Securities Act or any state securities laws and may not be offered or sold in
This press release shall not constitute an offer to sell or the solicitation of an offer to purchase the Notes or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offering, solicitation or sale would be unlawful.
About Carnival Corporation & plc
Carnival Corporation & plc is the largest global cruise company, and among the largest leisure travel companies, with a portfolio of world-class cruise lines - AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises and Seabourn.
Cautionary Note Concerning Forward-Looking Statements
Certain statements in this press release constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, the financing transactions described herein, future results, operations, outlooks, plans, goals, reputation, cash flows and liquidity and other events which have not yet occurred. Forward-looking statements reflect management's current expectations and are subject to risks, uncertainties and other factors that could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Factors that could affect our results include, among others, those discussed under the caption "Risk Factors" in our most recent annual report on Form 10-K, as well as our other filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained by visiting the Investor Relations page of our website at www.carnivalcorp.com/investors/ or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Carnival Corporation & plc