- Carnival Corporation (CCL, Financial) plans to issue $1 billion in new senior unsecured notes due 2031.
- The new issuance will refinance existing $993 million notes at 7.625% due in 2026.
- This strategic move aims to reduce interest expenses and extend debt maturities.
Carnival Corporation & plc (CCL) has announced a strategic debt refinancing initiative aimed at bolstering its financial position. The company plans to issue $1 billion in new senior unsecured notes expected to mature in 2031. This move comes as a strategy to refinance the existing $993 million senior unsecured notes that carry a 7.625% interest rate and are due in 2026.
The company intends to redeem the entire outstanding principal amount of the 2026 notes on or around May 22, 2025, at a redemption price equal to 100% of the principal amount plus accrued interest. By doing so, Carnival Corporation aims to reduce its interest expenses, signaling a more robust credit standing, as indicated by the investment-grade-style covenants that the new notes will carry.
This refinancing will extend Carnival Corporation's debt maturity profile by roughly five years, offering enhanced financial flexibility. The new notes are being offered exclusively to qualified institutional buyers and non-U.S. investors. By managing its debt structure proactively, Carnival Corporation is demonstrating financial discipline and confidence in its long-term business outlook. This move is timely, as it aligns with favorable current market conditions to secure lower interest rates ahead of potential future increases.
