Carnival Secures $2 Billion in Notes with 6.125% Interest, Maturing 2033

Written By: Pritam Dhar

Pritam Dhar

I have recently begun my journey in journalism, specialising in the ever-evolving world of travel and tourism. As part of Travel and Tour World, I focus on creating insightful stories that highlight industry trends, emerging destinations, aviation developments, and transformative changes shaping global travel. Through research-driven reporting and engaging storytelling, I aim to connect readers with meaningful insights into the future of tourism while exploring innovation, discovery, and the experiences that bring the world closer together.

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February 8, 2025 11:45 PM

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Carnival Corporation & plc announced the successful closure of its previously disclosed private offering of $2.0 billion in senior unsecured notes, carrying a 6.125% interest rate and maturing on February 15, 2033.

Proceeds from this offering, combined with available cash, were used to redeem $2.03 billion of 10.375% senior priority notes due 2028 issued by Carnival Holdings (Bermuda) Limited. This move reduces the company’s annual interest expenses by over $80 million, achieving a 4% reduction in interest costs.

This transaction is part of Carnival’s ongoing efforts to lower interest expenses, streamline its capital structure, and manage debt maturities effectively. The new notes, governed by investment-grade-style covenants, will pay interest semi-annually on February 15 and August 15, starting August 15, 2025.

The notes are fully and unconditionally guaranteed on an unsecured basis by Carnival plc and certain subsidiaries that also guarantee Carnival’s secured and unsecured debt.

The offering was limited to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to non-U.S. investors under Regulation S. The notes have not been registered under U.S. securities laws and cannot be offered or sold within the U.S. without appropriate registration or a valid exemption.

This announcement does not constitute an offer or solicitation to sell or purchase securities in any jurisdiction where such activity would be unlawful.