Carnival Corporation has announced that Carnival Corporation has priced the private offering of $1.0 billion aggregate principal amount of 10.5% senior unsecured notes due.
The offering of the Senior Unsecured Notes is expected to close on May 25, 2022, subject to customary closing conditions.
The Senior Unsecured Notes will pay interest semi-annually on June 1 and December 1 of each year, beginning on December 1, 2022, at a rate of 10.5% per year and are callable beginning June 1, 2025. The Senior Unsecured Notes will be unsecured and will mature on June 1, 2030.
The Senior Unsecured Notes will be fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by Carnival plc and certain of the company’s and Carnival plc’s subsidiaries that own or operate vessels and material intellectual property and that guarantee certain of the Company’s other indebtedness, including its first-priority secured indebtedness and second-priority secured indebtedness.
The Company expects to use the net proceeds of the offering to make scheduled principal payments on debt during fiscal 2023 and for general corporate purposes, including, without limitation, making repayments of its indebtedness, the financing or refinancing of a portion of the purchase price, rental payments, costs and expenses related to certain of its current and future property, plant and equipment (including leased assets and vessels) and their maintenance, repair, replacement and improvements, as well as any other payments related to its vessels’ ready-for-sea costs, in each case to the extent such amounts are not covered by the company’s existing and future export credit facilities.