Carnival prices upsized $3bn note offering
By Josh White
Date: Tuesday 08 Jul 2025
(Sharecast News) - Carnival priced an upsized $3bn offering of 5.75% senior unsecured notes due 2032 on Tuesday, with proceeds earmarked for debt repayment and refinancing, as part of its broader effort to streamline its capital structure and reduce secured borrowings.
The FTSE 250 cruise operator said the proceeds would be used to fully repay borrowings under its senior secured term loan facility due in 2028.
Remaining net proceeds, alongside existing cash, would be used to redeem $2.4bn of 5.75% senior unsecured notes maturing in 2027.
A conditional notice of redemption for those 2027 notes had been issued, with a redemption date set for 17 July.
The redemption price included the full principal, an applicable make-whole premium, and accrued interest up to but excluding the redemption date.
Carnival said the offering was a continuation of its deleveraging strategy, noting that following the transaction, the firm's senior secured debt would fall to $3.1bn.
The company said that all of its remaining secured debt included provisions for the security to fall away upon achieving investment-grade ratings from at least two of the three major credit agencies.
It said the new notes would also be governed by investment grade-style covenants.
The unsecured notes would mature on 1 August 2032 and pay interest semi-annually at 5.75%, starting 1 February 2026.
They would be jointly and severally guaranteed on an unsecured basis by Carnival plc and certain subsidiaries.
Carnival said the offering, conducted via a private placing, was expected to close on 16 July, subject to customary conditions.
At 1027 BST, shares in Carnival were up 0.4% in London at 1,985p.
Reporting by Josh White for Sharecast.com.
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