Carnival prices EUR 1bn note offering as part of debt restructure
announced on Wednesday that it has priced a €1bn offering of senior unsecured notes due 2031, carrying an annual interest rate of 4.125%.
The FTSE 250 cruise operator said the proceeds would be used to repay borrowings under its senior secured term loan facilities as part of ongoing efforts to reduce debt and simplify its capital structure.
It said the funds would fully repay borrowings on the 2027 first-priority senior secured term loan facility and partially repay the 2028 facility.
It followed a $450m prepayment made on 27 June towards the 2027 facility.
Carnival said the transaction formed part of a broader strategy to deleverage, lower interest costs, simplify its capital structure, and manage its debt maturity profile.
The notes were scheduled to mature on 15 July 2031, and would pay interest annually starting on 15 July 2026.
They would be unsecured but fully and unconditionally guaranteed on an unsecured basis by Carnival Corporation and certain subsidiaries.
The offering, which was expected to close on 7 July subject to customary conditions, included investment-grade style covenants.
At 1044 BST, shares in Carnival were up 1.54% in London at 1,913.69p.
Reporting by Josh White for Sharecast.com.
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