Carnival Prices $1.25 Bln Of 5.125% Senior Notes

(RTTNews) - Carnival Corp. & plc (CCL), a cruise company, on Wednesday, said it has priced a private offering of $1.25 billion of 5.125% senior unsecured notes due 2029.

The notes which are expected to close on October 15, will mature on May 1, 2029, and pay interest semi-annually on May 1 and November 1, beginning May 1, 2026, at a rate of 5.125%.

The company plans to use the proceeds, together with cash on hand, to redeem its $2.0 billion 6.000% senior unsecured notes due 2029 after the closing of the offering.

The company said the transaction is part of its strategy to reduce interest expense.

The company mentioned that the indenture governing the new notes will include investment-grade-style covenants.

On Tuesday, Carnival Corp traded in the overnight, 0.59% lesser at $28.74 on the New York Stock Exchange.