Carnival Corporation & plc Announces Upsizing and Pricing of $3.0 Billion 5.75% Senior Unsecured Notes Offering
Rhea-AI Summary
Carnival Corporation (NYSE: CCL) has announced the pricing of $3.0 billion in senior unsecured notes due 2032 at a 5.75% interest rate. The upsized offering's proceeds will be used to fully repay the company's senior secured term loan facility maturing in 2028, with remaining proceeds and cash on hand allocated to redeem $2.4 billion of 5.750% senior unsecured notes due 2027.
The new notes will pay interest semi-annually starting February 1, 2026, and will mature on August 1, 2032. This strategic transaction advances Carnival's deleveraging efforts, with remaining senior secured debt reduced to $3.1 billion. The offering is expected to close on July 16, 2025, subject to customary conditions.
Positive
- Strategic deleveraging reduces senior secured debt to $3.1 billion
- Investment grade-style covenants included in the new notes indenture
- Security fall away provisions on remaining secured debt upon achieving investment grade rating from two agencies
Negative
- Additional long-term debt commitment through 2032
- Company remains heavily leveraged with significant debt obligations
- Higher interest rate environment impacts borrowing costs at 5.75%
News Market Reaction
On the day this news was published, CCL declined 1.60%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Proceeds from the upsized offering of senior unsecured notes to be used to fully repay borrowings under the senior secured term loan facility with remaining net proceeds, together with cash on hand, to be used to redeem
The Company expects to use the proceeds from the Notes Offering to fully repay the borrowings under Carnival Corporation's first-priority senior secured term loan facility maturing in 2028, with remaining net proceeds, together with cash on hand, to be used to redeem
In connection with the pricing of the Notes Offering, the Company issued a conditional notice of redemption for
The transaction is a continuation of the Company's strategy to deleverage, manage its future debt maturities and reduce secured debt. Upon completion of this transaction the Company's remaining senior secured debt will be
The Notes Offering is expected to close on July 16, 2025, subject to customary closing conditions.
The Notes will pay interest semi-annually on February 1 and August 1 of each year, beginning on February 1, 2026, at a rate of
This press release does not constitute a notice of redemption with respect to the 2027 Unsecured Notes.
The Notes are being 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 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
FAQ
What is the size and interest rate of Carnival's (CCL) new notes offering in July 2025?
How will Carnival (CCL) use the proceeds from the July 2025 notes offering?
What is Carnival's (CCL) remaining senior secured debt after this transaction?
When will Carnival's (CCL) new 2025 notes begin paying interest?
When is the closing date for Carnival's (CCL) July 2025 notes offering?
