Carnival Corporation Secures $1.25B in Notes to Cut Interest Expense
Carnival Corporation has priced a private offering of $1.25 billion senior unsecured notes due 2029, set to mature on May 1, 2029. The notes will pay interest semi-annually at a rate of 5.125% per year, starting from May 1, 2026. The offering is expected to close on October 15, 2025.
The company aims to use the proceeds to redeem its existing $2 billion 6.000% senior unsecured notes due 2029. This move is part of Carnival's strategy to reduce its interest expense. The notes were priced at a significant discount, reflecting the company's current financial situation and market conditions.
The successful closure of this offering will provide Carnival Corporation with the necessary funds to execute its redemption plan. The lower interest rate of the new notes will help the company reduce its annual interest expense, potentially improving its financial performance.
