FX.co ★ Carnival Prices $2 Bln Private Offering Of 6.125% Senior Notes

Carnival Corporation & plc (CCL, CUK, CCL.L), a leading cruise operator, announced on Wednesday that it has successfully priced a private offering of $2 billion in senior unsecured notes, carrying an annual interest rate of 6.125%, set to mature in 2033.

The company intends to utilize the net proceeds from the offering, alongside existing cash reserves, to fully redeem Carnival Bermuda's $2.03 billion in senior priority notes maturing in 2028, which currently hold a 10.375% interest rate.

The newly issued notes will bear an annual interest rate of 6.125%, payable semi-annually on February 15 and August 15, with the first payment commencing on August 15. These notes are unsecured and have a maturity date of February 15, 2033. The transaction is anticipated to close on February 7.

Through this strategic financial maneuver, Carnival expects to reduce its annual interest expenses by more than $80 million. The notes will also be subject to an indenture incorporating covenants typical of investment-grade offerings.

On the London Stock Exchange, Carnival's shares closed 8.76% higher on Tuesday, reaching a price of 2005 pence. Meanwhile, on the New York Stock Exchange, the company saw a closing increase of 8.14%, reaching $27.77, and experienced a slight after-hours decline of 0.18%, bringing the price to $27.72.