Carnival Corporation & plc Announces the Redemption of Existing $2.03 Billion Senior Priority Notes and Launch of New Senior Unsecured Notes Offering for Interest Expense Reduction
Carnival has announced a strategic financial move involving a $2.0 billion private offering of new senior unsecured notes, set to mature in 2033. This initiative aims to refinance the existing $2.03 billion 10.375% senior priority notes due 2028 from Carnival Holdings (Bermuda)
The company plans to redeem the entire outstanding principal amount of the Senior Priority Notes on or about February 7, 2025, at 100.0% of the principal amount plus the applicable make-whole premium and accrued interest. The redemption will be funded through the new Notes Offering proceeds and cash on hand.
This refinancing strategy is designed to reduce interest expenses, simplify the capital structure, and better manage future debt maturities. The new notes will feature investment grade-style covenants and will be offered exclusively to qualified institutional buyers and non-U.S. investors under specific Securities Act regulations.
Carnival ha annunciato una mossa finanziaria strategica che prevede un offerta privata di $2,0 miliardi di nuovi note senior non garantiti, con scadenza nel 2033. Questa iniziativa mira a rifinanziare i $2,03 miliardi di note senior prioritarie al 10,375% in scadenza nel 2028 di Carnival Holdings (Bermuda).
La società prevede di riscattare l'intero importo principale delle Note Prioritarie Senior entro il 7 febbraio 2025, al 100,0% dell'importo principale più il premio per il riscatto e gli interessi maturati. Il riscatto sarà finanziato tramite il ricavato della nuova offerta di note e contante disponibile.
Questa strategia di rifinanziamento è progettata per ridurre le spese per interessi, semplificare la struttura del capitale e gestire meglio le scadenze del debito futuro. Le nuove note presenteranno convenzioni in stile investment grade e saranno offerte esclusivamente a compratori istituzionali qualificati e investitori non statunitensi secondo regolamenti specifici del Securities Act.
Carnival ha anunciado un movimiento financiero estratégico que implica una oferta privada de $2.0 mil millones de nuevas notas senior no garantizadas, que vencerán en 2033. Esta iniciativa busca refinanciar las notas prioritarias senior de $2.03 mil millones al 10.375% que vencen en 2028 de Carnival Holdings (Bermuda).
La compañía planea redimir la totalidad del monto principal pendiente de las Notas Prioritarias Senior el 7 de febrero de 2025, al 100.0% del monto principal más la prima por redención aplicable y los intereses acumulados. La redención se financiará a través de los ingresos de la nueva oferta de notas y efectivo disponible.
Esta estrategia de refinanciamiento está diseñada para reducir los gastos por intereses, simplificar la estructura de capital y gestionar mejor los vencimientos futuros de deuda. Las nuevas notas contarán con convenios de estilo grado de inversión y se ofrecerán exclusivamente a compradores institucionales calificados e inversores no estadounidenses bajo regulaciones específicas de la Ley de Valores.
카니발은 2033년에 만료될 20억 달러 규모의 비공개 신용노트 발행을 포함하는 전략적 재정 조치를 발표했습니다. 이 이니셔티브는 카니발 홀딩스(버뮤다)의 만기가 2028년인 20억 3천만 달러 규모의 10.375% 우선주 노트를 재융자하는 것을 목표로 합니다.
회사는 2025년 2월 7일 경 소멸하는 모든 우선주 노트의 원금을 100%의 원금 금액과 해당되는 조기 상환 프리미엄 및 발생 이자를 포함하여 상환할 계획입니다. 상환은 새로운 노트 발행 수익금과 보유 현금을 통해 자금이 조달됩니다.
이 재융자 전략은 이자 비용을 줄이고, 자본 구조를 단순화하며, 미래 부채 상환을 보다 잘 관리하기 위해 설계되었습니다. 새로운 노트는 투자등급 스타일의 계약을 특징으로 하며, 특정 증권법 규정에 따라 자격 있는 기관 투자자와 비 미국 투자자에게 독점적으로 제공됩니다.
Carnival a annoncé une démarche financière stratégique impliquant une offre privée de 2,0 milliards de dollars de nouvelles obligations senior non garanties, dont l'échéance est fixée à 2033. Cette initiative vise à refinancer les 2,03 milliards de dollars d'obligations senior prioritaires à 10,375% arrivant à échéance en 2028 de Carnival Holdings (Bermudes).
La société prévoit de racheter l'intégralité du montant principal des Obligations Prioritaires Senior vers le 7 février 2025, à 100,0% du montant principal, plus la prime de remboursement applicable et les intérêts courus. Le rachat sera financé par les produits de la nouvelle émission d'obligations et des liquidités disponibles.
Cette stratégie de refinancement est conçue pour réduire les charges d'intérêts, simplifier la structure du capital et mieux gérer les échéances de la dette à venir. Les nouvelles obligations comporteront des clauses de style investissement de catégorie et seront offertes 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 einen strategischen finanziellen Schritt angekündigt, der ein Privatangebot über 2,0 Milliarden US-Dollar für neue unbesicherte Senior Notes umfasst, die im Jahr 2033 fällig werden. Diese Initiative zielt darauf ab, die bestehenden 2,03 Milliarden US-Dollar 10,375% Senior Priority Notes mit Fälligkeitsdatum 2028 von Carnival Holdings (Bermuda) umzuschulden.
Das Unternehmen plant, den gesamten ausstehenden Hauptbetrag der Senior Priority Notes um den 7. Februar 2025 herum zu tilgen, zu 100,0% des Hauptbetrags zuzüglich der anfallenden Abfindungsprämie und aufgelaufenen Zinsen. Die Rückzahlung wird aus den Erlösen des neuen Note-Angebots und bestehendem Bargeld finanziert.
Diese Refinanzierungsstrategie dient dazu, Zinsausgaben zu reduzieren, die Kapitalstruktur zu vereinfachen und zukünftige Schuldenfälligkeiten besser zu verwalten. Die neuen Notes werden Investitionsgrad-Klauseln enthalten und werden ausschließlich qualifizierten institutionellen Käufern und Nicht-US-Investoren gemäß spezifischen Regulierungen des Wertpapiergesetzes angeboten.
- Strategic refinancing to reduce interest expenses
- Simplification of capital structure
- Investment grade-style covenants for new notes
- Additional make-whole premium payment required for early redemption
- Continued high debt levels with $2.0 billion new notes issuance
Insights
Carnival's strategic debt refinancing initiative marks a significant milestone in its financial evolution. The replacement of
The timing of this refinancing is astute, capitalizing on the current interest rate environment before potential market shifts. Based on current market conditions and comparable cruise line bonds, the new notes could potentially reduce interest expenses by
The extension of maturity from 2028 to 2033 is strategically significant, providing enhanced financial flexibility and reducing refinancing risk. The transition from senior priority to senior unsecured status, while maintaining similar principal amounts, demonstrates the company's strengthening balance sheet and improved access to capital markets. The simplified capital structure should result in lower overall borrowing costs and improved financial flexibility for future capital allocation decisions.
The inclusion of a make-whole premium in the redemption terms, while adding to the immediate cost, is standard practice and likely outweighed by the long-term interest savings. This refinancing represents a pivotal step in Carnival's financial optimization strategy, potentially setting a precedent for future debt restructuring in the cruise industry.
Carnival
This press release does not constitute a notice of redemption with respect to the Senior Priority Notes.
The Notes will be 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.
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