Carnival Corporation & plc Announces Repricing of Senior Secured First Lien Term Loan B Facilities as Part of Ongoing Interest Expense Reduction
Carnival has successfully completed a repricing of its senior secured first lien term loan facilities, involving approximately $700 million of term loans maturing in 2027 and $1.75 billion maturing in 2028. The repricing transactions are part of the company's ongoing efforts to reduce interest expenses and are expected to generate annual interest savings of approximately $18 million.
Both the 2027 and 2028 repriced loans will now bear interest at a rate per annum equal to SOFR with a 0.75% floor, plus a margin of 2.00%.
Carnival ha completato con successo una ristrutturazione dei suoi prestiti a termine senior garantiti di primo grado, coinvolgendo circa 700 milioni di dollari di prestiti a termine in scadenza nel 2027 e 1,75 miliardi di dollari in scadenza nel 2028. Le operazioni di ristrutturazione fanno parte degli sforzi in corso dell'azienda per ridurre le spese per interessi e si prevede genereranno un risparmio annuale sugli interessi di circa 18 milioni di dollari.
Entrambi i prestiti ristrutturati del 2027 e del 2028 avranno ora un tasso di interesse annuo pari a SOFR con un floor dello 0,75%, più un margine del 2,00%.
Carnival ha completado con éxito una reestructuración de sus préstamos a plazo senior garantizados de primer grado, que involucran aproximadamente 700 millones de dólares de préstamos a plazo que vencen en 2027 y 1,75 mil millones de dólares que vencen en 2028. Las transacciones de reestructuración son parte de los esfuerzos continuos de la empresa para reducir los gastos por intereses y se espera que generen un ahorro anual aproximado de 18 millones de dólares.
Ambos préstamos reestructurados de 2027 y 2028 tendrán ahora un interés anual igual a SOFR con un suelo del 0,75%, más un margen del 2,00%.
카니발은 2027년 만기 약 7억 달러와 2028년 만기 17억 5천만 달러의 첫 번째 담보 대출 시설의 재가격 책정을 성공적으로 완료했습니다. 재가격 거래는 회사의 이자 비용 절감을 위한 지속적인 노력의 일환이며, 연간 약 1,800만 달러의 이자 절감 효과를 가져올 것으로 예상됩니다.
2027년 및 2028년에 재가격 책정된 대출은 이제 SOFR 기준 금리에 0.75%의 바닥을 더한 2.00%의 마진이 가산된 연 이자율로 적용됩니다.
Carnival a réussi à procéder à une restructuration de ses prêts à terme senior sécurisés, impliquant environ 700 millions de dollars de prêts à terme arrivant à échéance en 2027 et 1,75 milliard de dollars arrivant à échéance en 2028. Les opérations de restructuration s'inscrivent dans le cadre des efforts continus de l'entreprise pour réduire les charges d'intérêts et devraient générer des économies d'intérêts annuelles d'environ 18 millions de dollars.
Les prêts restructurés de 2027 et 2028 porteront désormais un taux d'intérêt par an égal à SOFR, avec un plancher de 0,75%, plus une marge de 2,00%.
Carnival hat erfolgreich eine Neupreisgestaltung seiner senior gesicherten Terminkredite abgeschlossen, die etwa 700 Millionen Dollar an Terminkrediten umfassen, die 2027 fällig werden, sowie 1,75 Milliarden Dollar, die 2028 fällig werden. Die Neupreisgeschäfte sind Teil der laufenden Bemühungen des Unternehmens, die Zinsausgaben zu senken, und es wird erwartet, dass sie jährliche Zinsersparnisse von rund 18 Millionen Dollar generieren.
Die neu preisgestalteten Kredite von 2027 und 2028 werden nun einen Zinssatz von SOFR zuzüglich einer Marge von 2,00% und einem Mindestzinssatz von 0,75% tragen.
- Expected annual interest expense savings of $18 million
- Successful repricing of $2.45 billion in total term loans
- Reduction in borrowing costs through lower interest rates
- Substantial debt load remains with $2.45 billion in term loans
Insights
The repricing of
The timing is particularly advantageous as the cruise industry continues its post-pandemic recovery. With a substantial
The successful execution of this repricing indicates lenders' growing confidence in Carnival's financial health and the broader cruise industry's recovery trajectory. For investors, this represents a positive signal about the company's ability to optimize its capital structure and reduce financing costs in a rising rate environment.
The repricing terms reveal significant market confidence in Carnival's credit quality. A SOFR-based rate with a
Breaking down the transaction's structure -
The annualized savings of
The Repricing Transactions are a continuation of the Company's ongoing interest expense reduction. The reduction in interest rates is expected to result in interest expense savings of approximately
The 2027 Repriced Loans and the 2028 Repriced Loans bear interest at a rate per annum equal to SOFR with a
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 of 1933 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 26, 2024.
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.
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FAQ
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