Carnival Corporation & plc Announces Closing of $2.0 Billion 6.125% Senior Unsecured Notes Offering for Refinancing and Interest Expense Reduction

Core Viewpoint - Carnival Corporation has successfully closed a private offering of $2.0 billion in senior unsecured notes, which will be used to redeem$2.03 billion in higher-interest senior priority notes, thereby reducing interest expenses and simplifying its capital structure [1][2]. Group 1: Financial Details - The newly issued notes carry an interest rate of 6.125% and are due in 2033, with interest payments scheduled semi-annually starting August 15, 2025 [3]. - The transaction is expected to lower net annual interest expenses by over $80 million, representing a reduction of more than 4% in interest costs [2][1]. - The notes will be fully guaranteed on an unsecured basis by Carnival plc and certain subsidiaries, which also guarantee other forms of indebtedness [3]. Group 2: Strategic Implications - This transaction aligns with the company's strategy to manage future debt maturities and reduce overall interest expenses [2]. - The indenture governing the notes includes investment-grade-style covenants, indicating a focus on maintaining financial stability [2]. Group 3: Offering Details - The notes were offered exclusively to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S of the Securities Act [4]. - The notes will not be registered under the Securities Act, limiting their sale in the U.S. without proper registration or exemption [5].