Carnival closes €1 billion bond offering to repay secured debt

Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced Monday that it closed a €1.0 billion offering of 4.125% senior unsecured notes due 2031.

The cruise company will use proceeds from the bond offering to fully repay borrowings under Carnival Corporation's first-priority senior secured term loan facility maturing in 2027 and to repay a portion of borrowings under its first-priority senior secured term loan facility maturing in 2028.

The transaction follows Carnival's $450.0 million prepayment on June 27 toward the 2027 term loan facility. The company stated the moves are part of continuing efforts to reduce leverage, lower interest expense, simplify its capital structure and manage its maturity profile.

"We continue to opportunistically access the capital markets," said David Bernstein, Chief Financial Officer. "We are just one notch away from an investment grade credit rating and this successful transaction puts us further down that path."

The notes will pay interest annually on July 15 of each year, beginning July 15, 2026, at a rate of 4.125% per year. The notes will be unsecured and mature on July 15, 2031.

The notes will be guaranteed on a senior unsecured basis by Carnival Corporation and certain subsidiaries that also guarantee the company's first-priority secured indebtedness, other unsecured notes and convertible notes. The indenture governing the notes includes investment grade-style covenants.

The notes were offered only to qualified institutional buyers under Rule 144A and to non-U.S. investors outside the United States under Regulation S. The notes were not registered under the Securities Act of 1933.

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