Carnival Prices $2 Bln Private Offering Of 6.125% Senior Notes

(RTTNews) - Carnival Corp. & plc (CCL, CUK, CCL.L), a cruise operator company, Wednesday announced that it has priced its private offering of $2.0 billion aggregate principal amount of 6.125 percent senior unsecured notes due 2033.

The Company plans to use the net proceeds from the Notes Offering, along with existing cash, to redeem Carnival Bermuda's $2.03 billion senior priority notes due 2028, which have a 10.375 percent interest rate.

The Notes will have a 6.125 percent annual interest rate, paid twice a year on February 15 and August 15, starting August 15. They are unsecured and will mature on February 15, 2033. The Notes Offering is set to close on February 7.

The Company expects to lower its annual interest expenses by over $80 million through this transaction. The Notes will also be governed by an indenture with investment-grade-style covenants.

On Tuesday, Carnival had closed 8.76% higher at 2005 pence on the London Stock Exchange.

On Tuesday, Carnival had closed 8.14% higher at $27.77 and in the after-hours, Carnival traded 0.18% lesser at $27.72 on the New York Stock Exchange.