Carnival Corp continues to take steps to firm up its balance sheet as it confirms plans to refinance unsecured bonds.
The world’s largest cruise ship operator has initiated a private offering of $1bn in new senior unsecured notes that will mature in 2030.
This is to refinance its existing $1bn of senior indenture bearing 10.5% interest rate and due in 2030, which is expected to reduce interest expense.
The indenture that will govern the notes is expected to have investment grade-style covenants, the company added.
Carnival had previously outlined its intention to refinance its existing notes.
This follows its strong financial results for 2024, despite paying no dividend and indicating that shareholders would be waiting for some time.
Carnival’s shares on the New York Stock Exchange, currently at $26.23, are hovering around the recent peak of $28.49, which it hit at the end of January following its year-end results.(Copyright)
