Carnival closes $3 billion bond offering to refinance debt

Carnival Corporation (NYSE: CCL) completed a $3 billion offering of 5.75% senior unsecured notes due 2032, the cruise company announced.

The company will use proceeds to fully repay borrowings under its first-priority senior secured term loan facility maturing in 2028. Remaining proceeds, combined with cash on hand, will redeem $2.4 billion of 5.750% senior unsecured notes due 2027.

The new notes will pay interest semi-annually on February 1 and August 1 each year, beginning February 1, 2026, and mature August 1, 2032. The notes are guaranteed by Carnival plc and certain subsidiaries.

"Already this year the Company has opportunistically refinanced nearly $11 billion of debt and prepaid $1.1 billion of debt," said David Bernstein, chief financial officer. "The Company has cut its secured debt by nearly 70% since its peak in the fourth quarter of 2021."

Carnival issued a conditional notice of redemption for $2.4 billion of the 2027 notes to be redeemed July 17 at 100% of principal amount plus a make-whole premium and accrued interest. The redemption condition was satisfied upon closing of the new notes offering.

The notes were offered 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.

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