Carnival Corporation announces pricing of $775 million and €425 million second-priority senior secured notes due 2026
Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) (the "Company") one of the world's largest leisure travel companies, announced that Carnival Corporation (the "Corporation") has priced the private offerings of $775 million aggregate principal amount of 10.500% second-priority senior secured notes due 2026 of the Corporation (the "USD Notes") and €425 million aggregate principal amount of 10.125% second-priority senior secured notes due 2026 of the Corporation ( the "Euro Notes" and, together with the USD Notes, the "Notes"). The offering of the Notes is expected to close on July 20, 2020, subject to customary closing conditions.
The USD Notes and the Euro Notes will pay interest semi-annually on February 1 and August 1 of each year, beginning on February 1, 2021, at a rate of 10.500% and 10.125% per year, respectively. The Notes will mature on February 1, 2026.
The Notes will be fully and unconditionally guaranteed, jointly and severally, by Carnival plc and certain of the Corporation's and Carnival plc's subsidiaries that own or operate the Company's vessels and material intellectual property. Additionally, the Notes and the related guarantees will be secured by a second-priority lien on the collateral, which includes, without limitation, pledges on the capital stock of each subsidiary guarantor, mortgages on a substantial majority of the vessels and related vessel collateral, material intellectual property and pledges over other vessel-related assets including inventory, trade receivables, computer software and casino equipment.
The Corporation expects to use the net proceeds from the offerings of the Notes for general corporate purposes.
The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act, and outside the United States, only to non-U.S. investors pursuant to Regulation S.
The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.
About Carnival Corporation & plc
Carnival Corporation & plc is one of the world's largest leisure travel companies with a portfolio of nine of the world's leading cruise lines. With operations in North America, Australia, Europe and Asia, its portfolio features Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises (Australia), Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard.
