Carnival launches $1.25 billion notes offering to refinance debt

Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced the launch of a private offering of $1.25 billion in senior unsecured notes expected to mature in 2029.

The cruise company stated it intends to use the proceeds, along with cash on hand, to fully redeem its existing $2.0 billion 6.000% senior unsecured notes due 2029 after closing the new notes offering. The company expects this refinancing to reduce interest expense.

The new notes will include investment grade-style covenants in their governing indenture, according to the company's statement.

The notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933, and to non-U.S. investors outside the United States under Regulation S. The securities will not be registered under the Securities Act or state securities laws.

The company noted that the press release does not constitute a notice of redemption for the existing 2029 unsecured notes.

Carnival Corporation & plc 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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