Business
Carnival to Issue Notices of Redemption; Pric...
Carnival to Issue Notices of Redemption; Pric....
About this update from Carnival Plc
[{"type":"text","content":"\n\n \n \n\n\n\n\nCarnival Corporation & plc to Issue Notices of Redemption for $1.2 Billion of Debt and Announces Pricing of $500 Million 7.00% First-Priority Senior Secured Notes Offering and Upsizing and Pricing of $1.3 Billion Senior Secured First Lien Term Loan B Facility for Other Refinancing\nMIAMI, August 1, 2023 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today announced that Carnival Corporation (the “Company”) will issue conditional notices of redemption for the entire outstanding principal amount of the $775 Million 10.500% second-priority senior secured notes due 2026 (the “2026 USD Second Lien Notes”) and €425 Million 10.125% second-priority senior secured notes due 2026 (the “2026 Euro Second Lien Notes”) to be redeemed on August 11, 2023 and August 12, 2023, respectively. The Company will use cash on hand to finance the redemptions and expects to save over $120 million in interest expense on an annualized basis. The $1.2 billion of redemptions will be conditioned on the closing of the Refinancing Transactions described below. \nThe Company has also priced its private offering of $500 million aggregate principal amount of 7.00% first-priority senior secured notes due 2029 (the “Notes”) and successfully completed the syndication of 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 Refinancing Transactions are expected to close on August 8, 2023, subject to customary closing conditions and the execution of definitive documentation. The Company intends to use 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 will be 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 note...