Carnival Corporation & plc Announces Repricing of Senior Secured First Lien Term Loan B Facilities as Part of Ongoing Interest Expense Reduction

Carnival Corporation & plc, a leading global cruise company, made an important financial move by announcing the repricing of its senior secured first lien term loan B facilities. The update, disclosed on January 13, 2025, detailed the Company’s action to reprice approximately $700 million of term loans under its first-priority senior secured term loan facility maturing in 2027 and approximately $1.75 billion of term loans under its first-priority senior secured term loan facility maturing in 2028.

The repricing transactions, a strategic effort in continuing the company’s interest expense reduction initiatives, are expected to result in interest expense savings of approximately $18 million on an annualized basis. The updated terms specify that the 2027 Repriced Loans and the 2028 Repriced Loans will bear interest at a rate per annum equal to SOFR with a 0.75% floor, in addition to a 2.00% margin.

J.P. Morgan played a crucial role in facilitating this financial maneuver, acting as the lead arranger, joint bookrunner, and sole global coordinator for marketing the 2027 Repriced Loans and the 2028 Repriced Loans.

The Company, through a press release issued on the same day as the announcement, highlighted the positive implications of these repricing transactions. It’s noted that the actions are part of Carnival Corporation & plc’s ongoing efforts to enhance financial efficiency and reduce interest expenses.

Carnival Corporation & plc is associated with a range of renowned cruise lines, including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn.

It’s important to note that forward-looking statements, including those concerning future results, operations, outlooks, plans, and financial matters, involve risks, uncertainties, and assumptions and are subject to change based on various factors, both internal and external to the company.

Investors and stakeholders are encouraged to approach these announcements with caution, understanding that actual results may vary based on a variety of circumstances, including market conditions, regulatory changes, and global events impacting the travel industry.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Carnival Co. &’s 8K filing here.

About Carnival Co. &

Carnival Corporation & plc engages in the provision of leisure travel services in North America, Australia, Europe, Asia, and internationally. The company operates through four segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other. It operates port destinations, private islands, and a solar park, as well as owns and operates hotels, lodges, glass-domed railcars, and motor coaches.