The company issued a conditional notice of redemption for the entire outstanding principal amount of the 2026 euro notes to be redeemed on or about April 26 at a price equal to 101.906% of the principal amount.
Redemption funded by new notes and cash on hand
Carnival expects to fund the redemption using the net proceeds from the new notes offering and cash on hand, and the redemption is conditioned on the closing of the new notes offering.
Marketing a repricing transaction
In addition, and continuing its ongoing debt and interest expense reduction and capital structure simplification, the company expects to commence marketing a repricing transaction with respect to its $2.3b first-priority senior secured term loan facility maturing in 2028 and its $1.3b senior secured term loan facility maturing in 2027.
As part of the repricing transaction, Carnival expects to make partial prepayments of outstanding amounts under the 2028 secured term loan facility and the 2027 secured term loan facility in an aggregate amount of up to $800m.
Working toward investment-grade metrics
The company recently said it hopes to achieve investment-grade metrics in 2026.
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