Business
Carnival Announces Closing of Notes & Term Lo...
Carnival Announces Closing of Notes & Term Lo....
About this update from Carnival Plc
[{"type":"text","content":"\n\n \n \n\n\n\n\n \nCarnival Corporation & plc Announces Closing of $500 Million 7.00% First-Priority Senior Secured Notes Offering and Upsized $1.3 Billion Senior Secured First Lien Term Loan B Facility to Repay Existing Term Loan \nRedemption of USD 2026 Notes and Euro 2026 Notes to take place on August 11 and August 12, 2023, respectively, paying off $1.2 billion in debt and saving more than an estimated $120 million in interest expense on an annualized basis\nMIAMI, Aug. 8, 2023 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today announced that Carnival Corporation (the \"Company\") has closed its previously announced private offering of $500 million aggregate principal amount of 7.00% first-priority senior secured notes due 2029 (the \"Notes\") and its upsized $1.3 billion senior secured first lien term loan B facility (the \"New First Lien Term Loan\" and together with the offering of the Notes, the \"Refinancing Transactions\"). The Company used the proceeds from the Refinancing Transactions to repay a portion of the borrowings under the Company's existing first-priority senior secured term loan facility maturing in 2025. \nThe Notes will pay interest semi-annually on February 15 and August 15 of each year, beginning on February 15, 2024, at a rate of 7.00% per year. The Notes will mature on August 15, 2029. The Notes are fully and unconditionally guaranteed on a first-priority senior secured basis, jointly and severally, by Carnival plc and certain of the Company's and Carnival plc's subsidiaries that also guarantee our other first-priority secured indebtedness, our second-priority secured indebtedness, certain of our unsecured notes and our convertible notes. Additionally, the Notes and the related guarantees will be secured by a first-priority lien on the collateral, which generally includes pledges on the capital stock of each subsidiary guarantor, mortgages on a substantial majority of the vessels and related vessel collateral, material intellectual property and pledges over other vessel-related assets including inventory, trade receivables, computer software and casino equipment.\nThe New First Lien Term Loan bears interest at a rate per annum equal to SOFR with a 0.75% floor, plus a margin equal to 3.00%, and will mature in 2027. The Company entered into a new term loan agre...