Business
Carnival Announces Closing of €500 Million 5....
Carnival Announces Closing of €500 Million 5.....
About this update from Carnival Plc
[{"type":"text","content":"\n\n \n \n\n\n\n\nCarnival Corporation & plc Announces Closing of €500 Million 5.75% Senior Unsecured Notes Offering and Repricing of Senior Secured First Lien Term Loan B Facilities as Part of Ongoing Debt and Interest Expense ReductionTransaction included partial prepayment of $800 million under Senior Secured First Lien Term Loan B Facilities; Redemption of 2026 Euro Unsecured Notes to take place on April 26, 2024MIAMI, April 26, 2024 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today announced that Carnival Corporation (the \"Company\") has closed its previously announced private offering (the \"Notes Offering\") of €500 million aggregate principal amount of 5.75% senior unsecured notes due 2030 (the \"Notes\"). The Company will use the net proceeds from the Notes Offering, together with cash on hand, to redeem its €500 million 7.625% senior unsecured notes due 2026 (the \"2026 Euro Unsecured Notes\"), resulting in a reduction in interest expense of nearly 2%. The redemption will occur on April 26, 2024, following the satisfaction of the redemption condition.In addition, the Company has closed its previously announced repricing of approximately $1.75 billion of first-priority senior secured term loans (such repriced loans, the \"2028 Repriced Loans\") under its first-priority senior secured term loan facility maturing in 2028 (the \"2028 Secured Term Loan Facility\") and approximately $1 billion of first-priority senior secured term loans (such repriced loans, the \"2027 Repriced Loans\") under its first-priority senior secured term loan facility maturing in 2027 (the \"2027 Secured Term Loan Facility\" and, such transaction, the \"Repricing Transaction\"). As part of the Repricing Transaction, the Company has made a partial prepayment of $500 million under the 2028 Secured Term Loan Facility and a partial prepayment of $300 million under the 2027 Secured Term Loan Facility.The Notes Offering, the redemption of the 2026 Euro Unsecured Notes and the Repricing Transaction are a continuation of the Company's ongoing debt and interest expense reduction and capital structure simplification. Together, the reduction in both interest rates and total debt is expected to result in a reduction of net interest expense of over $30 million for the remainder of 2024 and over $50 million on an annuali...