Carnival Corporation & plc Closes €1.0 Billion Senior Unsecured Notes Offering

Carnival Corporation has closed a?1.0 billion senior unsecured notes offering with a 4.125% interest rate due in 2031. Proceeds will be used to repay borrowings under a term loan facility maturing in 2027 and a portion of the 2028 facility. The company will also use the funds to further deleverage and simplify its capital structure. The notes have investment-grade covenants and will mature in 2031.

Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) has successfully closed a private offering of €1.0 billion in senior unsecured notes due 2031, with an interest rate of 4.125% per year. The notes, which are expected to mature on July 15, 2031, will be used to repay borrowings under the company's senior secured term loan facilities maturing in 2027 and 2028. This transaction is part of Carnival's ongoing strategy to deleverage, reduce interest expenses, and simplify its capital structure, aiming to achieve an investment-grade credit rating [1][2][3].

The notes, which will pay interest annually on July 15 of each year, beginning on July 15, 2026, are unsecured and fully guaranteed by Carnival Corporation and certain of its subsidiaries. The offering is expected to close on July 7, 2025, subject to customary closing conditions. The indenture governing the notes will have investment-grade-style covenants [1].

The proceeds from the notes offering will be used to fully repay the borrowings under the 2027 Term Loan Facility and to repay a portion of the borrowings under the 2028 Term Loan Facility. This move follows a recent prepayment of $450.0 million on June 27, 2025, towards the 2027 Term Loan Facility [1][2].

Carnival Corporation & plc is the largest global cruise company and one of the largest leisure travel companies, with a portfolio of world-class cruise lines including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn [3].

References:
[1] https://www.prnewswire.com/news-releases/carnival-corporation--plc-announces-pricing-of-1-0-billion-4-125-senior-unsecured-notes-offering-302496033.html
[2] https://www.nasdaq.com/articles/carnival-prices-private-offering-eur-10-bln-4125-senior-unsecured-notes-due-2031
[3] https://www.tipranks.com/news/company-announcements/carnival-closes-e1-billion-senior-notes-offering-2