Loan Notes28 Jan 2025 21:47
Unfortunately, although we are getting a lower interest rate, we are punting the debt out.
Hopefully they are paying off other notes though.!
I guess we will see in 2 months time.!
Carnival Corporation & plc Announces Pricing of $2.0 Billion 6.125% Senior Unsecured Notes Offering for Refinancing and Interest Expense Reduction
Proceeds from the offering of senior unsecured notes to be used to redeem $2.03 billion 10.375% senior priority notes due 2028
MIAMI, Jan. 28, 2025 /PRNewswire/ -- Carnival Corporation & plc ((NYSE/LSE: CCL, NYSE:CUK) today announced that Carnival Corporation (the "Company") priced its private offering (the "Notes Offering") of $2.0 billion aggregate principal amount of 6.125% senior unsecured notes due 2033 (the "Notes"). The Company expects to use the net proceeds from the Notes Offering, together with cash on hand, to redeem the $2.03 billion 10.375% senior priority notes due 2028 (the "Senior Priority Notes") of Carnival Holdings (Bermuda) Limited ("Carnival Bermuda").
The Notes Offering and the redemption of the Senior Priority Notes are a continuation of the Company's strategy to reduce interest expense, simplify its capital structure and manage its future debt maturities. The Company expects to reduce net annual interest expense by over $80 million as a result of the transaction. In addition, the indenture that will govern the Notes is expected to have investment grade-style covenants.
The Notes Offering is expected to close on February 7, 2025, subject to customary closing conditions. The previously announced redemption of the Senior Priority Notes is expected to occur on February 7, 2025, and is conditioned on the closing of the Notes Offering.
The Notes will pay interest semi-annually on February 15 and August 15 of each year, beginning on August 15, 2025, at a rate of 6.125% per year. The Notes will be unsecured and will mature on February 15, 2033. The Notes will be fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by Carnival plc and certain of the Company's and Carnival plc's subsidiaries that also guarantee our first-priority secured indebtedness, certain of our other unsecured notes and our convertible notes.
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