Carnival conditionally calls dollar, euro second-lien notes due 2026

By Marisa Wong

Los Angeles, Aug. 2 – Carnival Corp. will issue conditional notices of redemption for the entire outstanding principal amount of its $775 million 10˝% second-priority senior secured notes due 2026 and €425 million 10 1/8% second-priority senior secured notes due 2026, according to a press release.

The dollar second-lien notes and euro second-lien notes will be redeemed on Aug. 11 and Aug. 12, respectively.

The company said it will use cash on hand to finance the redemptions and expects to save over $120 million in interest expense on an annualized basis.

The $1.2 billion of redemptions will be conditioned on the closing of the company’s refinancing transactions.

The company priced on Tuesday $500 million of 7% first-priority senior secured notes due 2029 and completed the syndication of its upsized $1.3 billion senior secured first-lien term loan B facility. The refinancing transactions are expected to close on Aug. 8.

PJT Partners is independent financial adviser to Carnival.

Carnival is a Miami-based cruise operator.

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