Carnival Corp. on Tuesday launched a private offering of $1.25 billion in new senior unsecured notes as it continues to overhaul its debt in a push to regain an investment-grade credit rating.
The world's largest cruise operator intends to use the proceeds, along with cash on hand, to fully redeem its $2.0 billion of 6.000% senior unsecured notes due 2029, according to a company statement.
Carnival said it expects the move to reduce its interest expense.
The new notes, which are expected to mature in 2029, will have investment grade-style covenants, the company said.
The offering is the latest in a series of financing moves this year aimed at simplifying the company's capital structure and strengthening its balance sheet.
Carnival, which recently posted record third-quarter results, has refinanced over $11 billion of debt and prepaid another $1 billion this year.
The company's chief financial officer recently said Carnival was "one notch away" from an investment-grade rating.
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Carnival Corp. on Tuesday said it priced a $1.25 billion offering of senior unsecured notes as part of its ongoing effort to lower borrowing costs.
Carnival Corp. reported record third-quarter results and said it has refinanced over $12 billion in debt this year as it pushes to regain an investment-grade credit rating.
Carnival Corp. posted a record third-quarter profit and raised its full-year outlook for the third time, as strong demand and higher onboard spending propelled revenues to an all-time high.
Carnival said it priced an upsized $3 billion offering of senior unsecured notes as it continues to shift its debt structure away from secured borrowings.