On September 30, 2025, Carnival Corporation & plc announced a redemption notice for all of its outstanding convertible debt, amounting to approximately $1.31 billion. The redemption will be executed using a mix of cash and equity, reducing the company’s total debt load and moving it closer to investment‑grade leverage metrics.
The move follows Carnival’s aggressive deleveraging program, which has already reduced net debt by more than $8 billion since January 2023. By eliminating the convertible notes, the company lowers its interest expense and simplifies its capital structure, supporting its goal of a net debt to adjusted EBITDA ratio below 3x.
The redemption is expected to improve Carnival’s credit profile and provide greater financial flexibility for future capital expenditures and fleet expansion. The announcement was made in conjunction with the release of the company’s Q3 2025 earnings, which highlighted record revenue and earnings growth.
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