Summary
Carnival Corporation (CCL) announced on October 15, 2025, the successful closing of a private offering of $1.25 billion in aggregate principal amount of 5.125% senior unsecured notes due 2029. This new debt issuance is intended to fund the redemption of all outstanding 6.000% senior unsecured notes due 2029, which amounts to $2.0 billion in principal. The company is offering to redeem these older notes at a premium of 101.500% of the principal amount plus accrued interest. This strategic refinancing demonstrates Carnival's proactive approach to managing its debt profile. By replacing higher-coupon debt with lower-cost debt, the company aims to reduce its overall interest expense. The new notes are guaranteed by Carnival plc and certain subsidiaries, and the indenture includes standard covenants regarding liens, mergers, and change of control events. The successful placement of these notes with qualified institutional buyers and non-U.S. investors underscores continued market confidence in the company's financial operations.
Key Highlights
- 1Carnival Corporation closed a $1.25 billion offering of 5.125% senior unsecured notes due 2029.
- 2Proceeds will be used to redeem the entire $2.0 billion outstanding 6.000% senior unsecured notes due 2029.
- 3The redemption price for the existing 2029 notes is 101.500% of the principal amount, plus accrued interest.
- 4The new notes are guaranteed by Carnival plc and certain subsidiaries.
- 5The offering was conducted as a private placement to qualified institutional buyers and non-U.S. investors.
- 6The new notes mature on May 1, 2029, with interest payable semi-annually.
- 7The indenture includes provisions for redemption at the company's option, including a 'make-whole' premium before February 1, 2029, and standard covenants.