8-KOther EventsExhibits & Filings

CARNIVAL CORP 8-K Report, Corporate Update (May 19, 2022)

Filed May 19, 2022For Securities:CCL

Summary

Carnival Corporation & plc announced on May 18, 2022, the pricing of a $1.0 billion offering of Senior Unsecured Notes due 2030. These notes carry a 10.500% interest rate, payable semi-annually, and will mature on June 1, 2030. The unsecured nature of these notes and their relatively high interest rate suggest a move to bolster liquidity amidst ongoing industry challenges, though they offer a higher yield for investors. The proceeds from this offering are earmarked for scheduled debt principal payments in fiscal year 2023 and general corporate purposes. This includes further debt repayments, financing for property, plant, and equipment (including vessels), and associated maintenance and operational costs. This strategic financing aims to manage near-term debt obligations and support ongoing operational needs, demonstrating Carnival's focus on maintaining financial flexibility.

Key Highlights

  • 1Priced $1.0 billion in Senior Unsecured Notes due 2030.
  • 2Notes carry a 10.500% annual interest rate, paid semi-annually.
  • 3Maturity date for the Senior Unsecured Notes is June 1, 2030.
  • 4Proceeds to be used for fiscal 2023 debt principal payments and general corporate purposes.
  • 5General corporate purposes include further debt repayment and funding for property, plant, and equipment (including vessels).
  • 6Notes are unsecured and callable starting June 1, 2025.
  • 7Offering was conducted through private placement to qualified institutional buyers and non-U.S. investors.

Frequently Asked Questions

The primary purposes are to fund scheduled principal payments on debt in fiscal year 2023 and for general corporate purposes. This includes making repayments on existing indebtedness, financing or refinancing costs related to property, plant, and equipment (such as vessels), and covering related maintenance and operational expenses.

The Senior Unsecured Notes are priced at a 10.500% annual interest rate, which will be paid semi-annually. The notes will mature on June 1, 2030.

No, these are Senior Unsecured Notes, meaning they are not backed by specific collateral. This implies a higher risk profile compared to secured debt, which is reflected in the interest rate.

The filing emphasizes risks related to the ongoing impact of COVID-19, geopolitical events like the war in Ukraine affecting travel demand, potential reputational damage from incidents, regulatory changes (health, environment, safety), climate change concerns, data security breaches, labor costs, fuel price fluctuations, competition, and shipbuilding/maintenance program execution. The filing also refers to detailed risk factors in previous 10-K and 10-Q reports.