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HomeNewsFinance, Legal & RegulatoryCarnival closes $500m 7% notes offering and $1.3b loan facility

Carnival closes $500m 7% notes offering and $1.3b loan facility

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Carnival Corp. & plc closed its private offering of $500m 7% first-priority senior secured notes due 2029 and its upsized $1.3b senior secured first lien term loan B facility.

With this, Carnival repaid a portion of the borrowings under its existing first-priority senior secured term loan facility maturing in 2025. 

Early redemption of higher-cost notes

The company now plans to redeem the entire outstanding principal amount of its $775m 10.5% second-priority senior secured notes due 2026 and €425m 10.125% second-priority secured notes due 2026 on Aug. 11 and Aug. 12, respectively.

$120m annualized interest savings

This refinancing will pay off $1.2b in debt and save more than an estimated $120m in annual interest expense.

The new first lien term loan B, upsized from $1b, will bear annual interest at a rate equal to the Secured Overnight Financing Rate with a 0.75% floor, plus a margin equal to 3%, and will mature in 2027.

PJT Partners served as independent financial advisor to Carnival Corp. & plc.

TAGS: Carnival Corp. & plc PJT Partners
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