Carnival Corp is planning to refinance up to $4.1bn of bonds and loans to reduce interest rate expenses.
The New York-listed cruise line said it has started offering a new €500m ($532m) bond.
It is a private offer of new senior unsecured notes expected to mature in 2030.
That issue will refinance its €500m, 7.625% senior unsecured notes due in 2026.
The company has issued a conditional notice of redemption for the entire outstanding principal amount of the 2026 bond to be redeemed on or about 26 April.
The redemption price will be equal to 101.906% of the principal, plus accrued and unpaid interest.
Carnival is continuing its debt and interest expense reduction and capital structure simplification.
In addition to the new bond issue, it expects to begin marketing a repricing transaction for its $2.3bn first-priority senior secured term loan facility maturing in 2028 and its $1.3bn senior secured term loan facility maturing in 2027.
As part of the repricing transaction, the company expects to make partial prepayments of outstanding amounts under the 2028 facility and the 2027 facility of up to $800m.
PJT Partners is serving as an independent financial adviser.
Carnival reported its best-ever first-quarter revenue of $5.41bn in March, as booking volumes soared to an all-time high.
It raised its net yield guidance for the full year of 2024 by more than a point to about 9.5%.
In December, credit rating agency S&P Global Ratings upgraded Carnival two notches to BB-.
Last year, the line ordered its first newbuildings in five years after recovering from the pandemic crisis.
