Carnival prices $1.25 billion bond offering to refinance higher-rate debt

Carnival Corporation (NYSE: CCL) announced it priced a $1.25 billion offering of 5.125% senior unsecured notes due 2029, according to a company statement.

The cruise operator plans to use proceeds from the bond sale, combined with cash on hand, to redeem $2.0 billion of existing 6.000% senior unsecured notes also due in 2029. The transaction represents part of Carnival's strategy to reduce interest expenses by replacing higher-rate debt with lower-cost financing.

The new notes will pay interest semi-annually on May 1 and November 1 each year, beginning May 1, 2026, at an annual rate of 5.125%. The bonds will mature on May 1, 2029, and will be guaranteed by Carnival plc and certain subsidiaries that also guarantee the company's other secured and unsecured debt.

The offering is expected to close on October 15, 2025, subject to standard closing conditions. The indenture governing the new notes will include investment grade-style covenants.

The notes are being sold exclusively to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S. The securities are not registered under the Securities Act of 1933 and cannot be offered or sold in the United States without registration or an applicable exemption.

Carnival operates multiple cruise brands including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises and Seabourn.

You May Also Be Interested In

• BXP prices $700M in senior unsecured notes due 2036
• Universal Health Services completes Talkspace acquisition
• XTEND wins $15M NATO defense contract ahead of NYSE listing