(Alliance News) - Carnival PLC on Wednesday said its AIDA Cruises business will begin to offer Canary Island cruises from December 5, as well as announcing the closing of its private note offerings.
The cruise operator's private offerings of USD1.45 billion aggregate principal amount of 7.625% senior unsecured notes due 2026 as well as its EUR500 million aggregate principal amount of 7.625% senior unsecured notes due 2026 have closed.
Proceeds from these notes will be used: "For general corporate purposes".
These purposes include: "Financing or refinancing of a portion of the purchase price, rental payments, costs and expenses related to certain of our current and future property, plant and equipment (including leased assets and vessels) and their repair, replacement and improvements, as well as any other payments related to its vessels' ready-for-sea costs, in each case to the extent such amounts are not covered by the corporation's existing and future export credit facilities."
Additionally AIDA, the leading German cruise line, is to offer cruises around the Canary Islands - a Spanish archipelago - on December 5 with AIDAperla. This will be followed by AIDAmar, which starts its winter season with a Christmas voyage December 20.
The seven-day voyages to the islands will start on Saturdays or Sundays from Gran Canaria.
Carnival explained that: "The Spanish government adopted clear regulations for safe travel in the Canaries in November, which are in line with AIDA's already established hygiene and prevention measures.
"AIDA's health and safety protocols, which have been audited by SGS Institute Fresenius and confirmed by the classification society DNV-GL, among others, include measures such as the free Covid-19 test before the voyage, secure arrival and departure, medical care, distance regulations and increased disinfection measures on board, as well as guided shore excursions."
As a result of the situation in the United Arab Emirates, France, and Spain - aside from the Canaries - AIDA has had to adjust its schedule in the Orient and the Western Mediterranean. ALl cruises on AIDAstella and AIDAprima planned between the start of December and January 26 have been cancelled.
Shares in Carnival closed 0.6% higher in London on Wednesday at 1,340.00 pence.
This follows Tuesday's announcement that another Carnival business, P&O Cruises, has extended its operation pause into April 2021 due to uncertainty around European ports of call.
P&O Cruises president Paul Ludlow said: "With hopeful news headlines clearly we do not want to extend our pause in operations any further than absolutely necessary, but given the ever changing guidance around international travel and the varying regulations in many European ports of call we felt it prudent to cancel these additional dates."
Guests with booking on a cancelled cruise will automatically receive a 125% future cruise credit, or a 100% refund by filling out an online form.
Also on Tuesday came news that Carnival had closed its registered direct offering of 10.4 million shares at USD7.59 per share to a holder of its 5.75% convertible senior notes due 2023.
Proceeds were used to repurchase USD90.8 million amount of its convertible notes in a transaction that was "privately negotiated". Following repurchase, a USD536.7 million principal amount of the convertible notes remains outstanding.
By Anna Farley; annafarley@alliancenews.com
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