Carnival Prices $2.41 Billion Notes Offering for Refinancing
July 22 2021 - 6:08AM
Dow Jones News
By Dave Sebastian
Carnival Corp. said it has priced its offering of $2.41 billion
in first-priority senior secured notes due 2028 to refinance part
of its existing 11.5% notes and to extend maturities.
The cruise operator said Wednesday evening that it expects the
offering of the new notes to close July 26. The new notes will pay
interest semiannually on Feb. 1 and Aug. 1 each year starting 2022
at an annual rate of 4%, it said. They will mature on Aug. 1, 2028,
Carnival said.
Carnival expects to use net proceeds from the offering to fund
its tender offer to buy up to $2 billion in 11.5% first-priority
senior secured notes due 2023 and the related consent solicitation,
as well as the payment of accrued and unpaid interest on those
notes accepted for purchase and related fees and expenses. The
company said the new notes' 4% interest rate will replace existing
debt carrying an 11.5% coupon and generate $135 million in interest
savings each year.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
July 22, 2021 06:54 ET (10:54 GMT)
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