Carnival Corporation & plc announced today a private offering of $1.25 billion in senior unsecured notes due 2029. The notes carry a 5.125 % coupon and will mature on May 1 2029, with semi‑annual interest payments beginning May 1 2026.
The company will use the proceeds, together with cash on hand, to redeem $2.0 billion of its 6.000 % senior unsecured notes due 2029. This redemption is intended to reduce interest expense and further the company’s aggressive deleveraging program, which has already lowered net debt by more than $8 billion since January 2023.
The indenture governing the new notes will include investment‑grade‑style covenants, and the offering is expected to close on October 15 2025, subject to customary closing conditions. By replacing higher‑rate debt with lower‑rate, investment‑grade notes, Carnival aims to improve its leverage profile and free cash flow for future growth initiatives.
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