Carnival closes $1.25 billion bond offering to refinance debt

Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) completed a $1.25 billion offering of 5.125% senior unsecured notes due 2029, according to a company statement.

The cruise company will use proceeds from the bond offering along with cash on hand to redeem all $2.0 billion of its outstanding 6.000% senior unsecured notes due 2029. Carnival issued a redemption notice on October 15, 2025, with the redemption scheduled for November 1, 2025, at a price of 101.500% of the principal amount plus accrued interest.

The new notes will pay interest semi-annually at 5.125% per year beginning May 1, 2026, and mature on May 1, 2029. The notes are guaranteed by Carnival plc and certain subsidiaries that also guarantee the company's other secured and unsecured debt obligations.

The debt refinancing represents part of Carnival's strategy to reduce interest expenses. The transaction replaces 6.000% notes with 5.125% notes, lowering the company's borrowing costs by 0.875 percentage points on the refinanced portion.

The notes were offered through a private placement to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S. The securities were not registered under the Securities Act of 1933.

Carnival operates cruise lines including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises and Seabourn.

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