Carnival launches $1 billion term loan B at SOFR plus 350 bps

By Sara Rosenberg

New York, July 31 – Carnival Corp. held a lender call at 11 a.m. ET on Monday to launch a $1 billion senior secured first-lien term loan B due 2027 that is talked at SOFR plus 350 basis points with a 0.75% floor and an original issue discount of 99 to 99.25, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

JPMorgan Chase Bank is the lead on the deal.

Commitments are due at noon ET on Thursday, the source added.

Proceeds will be used with $500 million of other secured debt maturing in 2029 to repay a portion of the company’s existing first-priority senior secured term loan due in 2025.

After closing on the refinancing, the company intends to redeem all of its 10˝% second-priority senior secured notes due 2026 and 10 1/8% second-priority senior secured notes due 2026 using cash on hand.

The $1.2 billion of redemptions will be conditioned on the closing of the refinancing.

Carnival is a Miami-based cruise operator.

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