Carnival conditionally calls all 11½% notes due 2023 for redemption

By Wendy Van Sickle

Columbus, Ohio, Oct. 8 – Carnival Corp. & plc issued a conditional notice to redeem the full outstanding principal amount of its 11½% first-priority senior secured notes due April 1, 2023 at par plus a make-whole premium plus accrued interest on Oct. 18, according to an 8-K filing with the Securities and Exchange Commission.

The company plans to use proceeds from a new $2.3 billion seven-year term loan facility to fund the redemption, which is conditioned on the company receiving sufficient funds from the term loan.

Carnival said this refinancing will generate annual interest savings of more than $135 million and extend its debt maturities.

Carnival is a Miami-based cruise operator.

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