Carnival Corporation Completes $3 Billion Notes Offering, Refinances Debt and Optimizes Capital Structure.

Carnival Corporation has completed a $3 billion private offering of senior unsecured notes with a 5.75% interest rate, maturing in 2032. The proceeds will be used to refinance existing debt and optimize the company's capital structure. The newly issued notes are guaranteed by Carnival plc and certain subsidiaries, with a redemption option prior to May 1, 2032.

Carnival Corporation (CCL) has successfully completed a $3 billion private offering of senior unsecured notes, featuring a 5.75% interest rate and a maturity date of August 1, 2032. The proceeds from this offering will be utilized to refinance existing debt and optimize the company's capital structure [1].

The newly issued notes are fully and unconditionally guaranteed by Carnival plc and certain of its subsidiaries. This move is part of Carnival's ongoing strategy to deleverage, manage future debt maturities, and reduce secured debt, positioning the company toward investment-grade credit. The company plans to use the funds to repay a senior secured term loan maturing in 2028 and redeem $2.4 billion of senior unsecured notes due in 2027 [1].

The transaction also includes a conditional notice of redemption for $2.4 billion of the 2027 unsecured notes, which will be redeemed on July 17, 2025, at a price equal to 100.0% of the principal amount plus an applicable "make-whole" premium and accrued and unpaid interest. The condition to completion of this redemption was satisfied upon closing of the notes offering [2].

The interest on the newly issued notes will be paid semi-annually, beginning on February 1, 2026, at a rate of 5.75% per year. The notes were offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended, and outside the United States, to non-U.S. investors pursuant to Regulation S under the Securities Act [2].

Analysts have mixed views on the stock. The most recent analyst rating is a Hold with a $21.00 price target. However, Spark, TipRanks’ AI Analyst, rates CCL as Outperform, driven by strong financial recovery and a positive earnings outlook. Technical indicators show bullish momentum, although caution is warranted due to overbought signals [1].

Carnival Corporation is the largest global cruise company and one of the largest leisure travel companies, with a portfolio that includes world-class cruise lines such as AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn [1].

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/CCL/pressreleases/33478184/carnival-closes-3-billion-senior-notes-offering/
[2] https://www.marketscreener.com/quote/stock/CARNIVAL-CORPORATION-12003/news/Carnival-Corporation-plc-Announces-Closing-of-3-Billion-Senior-Unsecured-Notes-Offering-50528513/