Carnival Corporation & plc Announces Pricing of $2.0 Billion 6.125% Senior Unsecured Notes Offering for Refinancing and Interest Expense Reduction
Carnival has announced the pricing of $2.0 billion in senior unsecured notes with a 6.125% interest rate, due 2033. The proceeds, along with cash on hand, will be used to redeem $2.03 billion of 10.375% senior priority notes due 2028.
This refinancing strategy aims to reduce net annual interest expense by over $80 million while simplifying the company's capital structure and managing future debt maturities. The new notes will pay interest semi-annually starting August 15, 2025, and will be fully guaranteed by Carnival plc and certain subsidiaries.
The notes offering is expected to close on February 7, 2025, and will be offered exclusively to qualified institutional buyers and non-U.S. investors under specific Securities Act regulations.
Carnival ha annunciato il prezzo di 2,0 miliardi di dollari in note senior non garantite con un tasso di interesse del 6,125%, in scadenza nel 2033. Le entrate, insieme ai fondi disponibili, saranno utilizzate per rimborsare 2,03 miliardi di dollari di note senior con priorità al 10,375% in scadenza nel 2028.
Questa strategia di rifinanziamento mira a ridurre la spesa annuale netta per interessi di oltre 80 milioni di dollari semplificando la struttura del capitale dell'azienda e gestendo le scadenze future del debito. Le nuove note pagheranno gli interessi semestralmente a partire dal 15 agosto 2025 e saranno completamente garantite da Carnival plc e alcune filiali.
Si prevede che l'offerta di note si chiuda il 7 febbraio 2025 e sarà offerta esclusivamente a investitori istituzionali qualificati e a investitori non statunitensi, secondo specifiche normative sul Securities Act.
Carnival ha anunciado el precio de 2.0 mil millones de dólares en notas senior no garantizadas con una tasa de interés del 6.125%, que vencerán en 2033. Los ingresos, junto con el efectivo disponible, se utilizarán para redimir 2.03 mil millones de dólares de notas senior con prioridad del 10.375% que vencen en 2028.
Esta estrategia de refinanciamiento tiene como objetivo reducir el gasto neto anual en intereses en más de 80 millones de dólares mientras simplifica la estructura de capital de la empresa y gestiona los vencimientos de deuda futuros. Las nuevas notas pagarán intereses semestralmente a partir del 15 de agosto de 2025 y estarán completamente garantizadas por Carnival plc y ciertas subsidiarias.
Se espera que la oferta de notas se cierre el 7 de febrero de 2025, y se ofrecerá exclusivamente a compradores institucionales calificados e inversores no estadounidenses bajo regulaciones específicas de la Ley de Valores.
카니발은 20억 달러 규모의 무담보 시니어 노트의 가격을 발표했습니다. 이자율은 6.125%로 2033년에 만기됩니다. 수익금은 현금과 함께 2028년에 만기가 도래하는 10.375% 시니어 우선 노트 20억 3000만 달러를 상환하는 데 사용됩니다.
이번 재융자는 연간 순 이자 비용을 8천만 달러 이상 줄이기 위해 추진되며, 회사의 자본 구조를 단순화하고 미래의 부채 만기를 관리하는 데 도움을 줍니다. 새로운 노트는 2025년 8월 15일부터 반기마다 이자를 지급하며, 카니발 plc 및 특정 자회사가 전액 보증합니다.
노트 제공은 2025년 2월 7일에 마감될 것으로 예상되며, 특정 증권법 규정에 따라 자격을 갖춘 기관 투자자 및 비미국 투자자에게만 독점적으로 제공됩니다.
Carnival a annoncé le prix de 2,0 milliards de dollars en notes senior non sécurisées avec un taux d'intérêt de 6,125%, échéance 2033. Les fonds, ainsi que la trésorerie disponible, seront utilisés pour racheter 2,03 milliards de dollars de notes senior à priorité de 10,375% arrivant à échéance en 2028.
Cette stratégie de refinancement vise à réduire les frais d'intérêt nets annuels de plus de 80 millions de dollars tout en simplifiant la structure du capital de l'entreprise et en gérant les échéances de la dette futures. Les nouvelles notes paieront des intérêts semestriellement à partir du 15 août 2025 et seront entièrement garanties par Carnival plc et certaines filiales.
L'offre de notes devrait se clôturer le 7 février 2025 et sera offerte exclusivement à des acheteurs institutionnels qualifiés et à des investisseurs non américains selon des réglementations spécifiques de la loi sur les valeurs mobilières.
Carnival hat den Preis von 2,0 Milliarden Dollar für unbesicherte Senioranleihen mit einem Zinssatz von 6,125%, fällig 2033, bekanntgegeben. Die Erlöse werden zusammen mit vorhandenen Barmitteln verwendet, um 2,03 Milliarden Dollar von 10,375% Seniorprioritätsanleihen, fällig 2028, zurückzuzahlen.
Diese Refinanzierungsstrategie zielt darauf ab, die jährliche Nettozinsaufwendung um über 80 Millionen Dollar zu reduzieren, während die Kapitalstruktur des Unternehmens vereinfacht und künftige Fälligkeiten von Schulden verwaltet werden. Die neuen Anleihen zahlen ab dem 15. August 2025 halbjährlich Zinsen und werden vollständig von Carnival plc und bestimmten Tochtergesellschaften garantiert.
Das Angebot der Anleihen wird voraussichtlich am 7. Februar 2025 geschlossen und wird ausschließlich qualified institutional buyers und Nicht-US-Investoren unter bestimmten Vorschriften des Securities Act angeboten.
- Reduction in net annual interest expense by over $80 million
- Lower interest rate of 6.125% compared to previous 10.375%
- Investment grade-style covenants in the new notes indenture
- Simplification of capital structure
- Maintains substantial debt level with $2.0 billion new notes issuance
- Long-term debt commitment extending to 2033
Insights
This refinancing marks a pivotal moment in Carnival's financial recovery, demonstrating remarkable progress in strengthening its balance sheet and reducing interest burden. The ability to secure a
The
The timing of this refinancing is strategic, capitalizing on:
- Favorable market conditions before potential rate volatility
- Strong cruise industry fundamentals and booking trends
- Improved leverage metrics and cash flow generation
The extension of maturity to 2033 creates a more balanced debt profile, reducing refinancing risk. The investment grade-style covenants are particularly noteworthy, as they typically offer more operational flexibility and signal the company's path toward potential investment grade status - a remarkable turnaround from the pandemic-era distressed levels.
Proceeds from the offering of senior unsecured notes to be used to redeem
The Notes Offering and the redemption of the Senior Priority Notes are a continuation of the Company's strategy to reduce interest expense, simplify its capital structure and manage its future debt maturities. The Company expects to reduce net annual interest expense by over
The Notes Offering is expected to close on February 7, 2025, subject to customary closing conditions. The previously announced redemption of the Senior Priority Notes is expected to occur on February 7, 2025, and is conditioned on the closing of the Notes Offering.
The Notes will pay interest semi-annually on February 15 and August 15 of each year, beginning on August 15, 2025, at a rate of
This press release does not constitute a notice of redemption with respect to the Senior Priority 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 (
Cautionary Note Concerning Forward-Looking Statements
Carnival Corporation and Carnival plc and their respective subsidiaries are referred to collectively in this press release as "Carnival Corporation & plc," "our," "us" and "we." Some of the statements, estimates or projections contained in this press release are "forward-looking statements" that involve risks, uncertainties and assumptions with respect to us, including some statements concerning the financing transactions described herein, future results, operations, outlooks, plans, goals, reputation, cash flows, liquidity and other events which have not yet occurred. These statements are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are statements that could be deemed forward-looking. These statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and the beliefs and assumptions of our management. We have tried, whenever possible, to identify these statements by using words like "will," "may," "could," "should," "would," "believe," "depends," "expect," "goal," "aspiration," "anticipate," "forecast," "project," "future," "intend," "plan," "estimate," "target," "indicate," "outlook," and similar expressions of future intent or the negative of such terms.
Forward-looking statements include those statements that relate to our outlook and financial position including, but not limited to, statements regarding:
- Interest, tax and fuel expenses
- Liquidity and credit ratings
- The transactions described herein
Because forward-looking statements involve risks and uncertainties, there are many factors that could cause our actual results, performance or achievements to differ materially from those expressed or implied by our forward-looking statements. This note contains important cautionary statements of the known factors that we consider could materially affect the accuracy of our forward-looking statements and adversely affect our business, results of operations and financial position. These factors include, but are not limited to, the following:
- Events and conditions around the world, including geopolitical uncertainty, war and other military actions, pandemics, inflation, higher fuel prices, higher interest rates and other general concerns impacting the ability or desire of people to travel could lead to a decline in demand for cruises as well as have significant negative impacts on our financial condition and operations.
- Incidents concerning our ships, guests or the cruise industry may negatively impact the satisfaction of our guests and crew and lead to reputational damage.
- Changes in and non-compliance with laws and regulations under which we operate, such as those relating to health, environment, safety and security, data privacy and protection, anti-money laundering, anti-corruption, economic sanctions, trade protection, labor and employment, and tax may be costly and lead to litigation, enforcement actions, fines, penalties and reputational damage.
- Factors associated with climate change, including evolving and increasing regulations, increasing global concern about climate change and the shift in climate conscious consumerism and stakeholder scrutiny, and increasing frequency and/or severity of adverse weather conditions could have a material impact on our business.
- Inability to meet or achieve our targets, goals, aspirations, initiatives, and our public statements and disclosures regarding them, including those related to sustainability matters, may expose us to risks that may adversely impact our business.
- Cybersecurity incidents and data privacy breaches, as well as disruptions and other damages to our principal offices, information technology operations and system networks and failure to keep pace with developments in technology have adversely impacted and may in the future materially adversely impact our business operations, the satisfaction of our guests and crew and may lead to fines, penalties and reputational damage.
- The loss of key team members, our inability to recruit or retain qualified shoreside and shipboard team members and increased labor costs could have an adverse effect on our business and results of operations.
- Increases in fuel prices, changes in the types of fuel consumed and availability of fuel supply may adversely impact our scheduled itineraries and costs.
- We rely on suppliers who are integral to the operations of our businesses. These suppliers and service providers may be unable to deliver on their commitments, which could negatively impact our business.
- Fluctuations in foreign currency exchange rates may adversely impact our financial results.
- Overcapacity and competition in the cruise and land-based vacation industry may negatively impact our cruise sales, pricing and destination options.
- Inability to implement our shipbuilding programs and ship repairs, maintenance and refurbishments may adversely impact our business operations and the satisfaction of our guests.
- We require a significant amount of cash to service our debt and sustain our operations. Our ability to generate cash depends on many factors, including those beyond our control, and we may not be able to generate cash required to service our debt and sustain our operations.
- Our substantial debt could adversely affect our financial health and operating flexibility.
- The risk factors included in Carnival Corporation's and Carnival plc's Annual Report on Form 10-K filed with the SEC on January 27, 2025.
The ordering of the risk factors set forth above is not intended to reflect our indication of priority or likelihood. Additionally, many of these risks and uncertainties are currently, and in the future may continue to be, amplified by our substantial debt balance incurred during the pause of our guest cruise operations. There may be additional risks that we consider immaterial or which are unknown.
Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing obligations under applicable law or any relevant stock exchange rules, we expressly disclaim any obligation to disseminate, after the date of this document, any updates or revisions to any such forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which any such statements are based.
Forward-looking and other statements in this document may also address our sustainability progress, plans, and goals (including climate change and environmental-related matters). In addition, historical, current, and forward-looking sustainability- and climate-related statements may be based on standards and tools for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions and predictions that are subject to change in the future and may not be generally shared.
View original content:SOURCE Carnival Corporation & plc
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