Carnival Closes 11.5% First Priority Secured Notes of $4 Billion

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Carnival Corporation has announced that it has closed its private offering of $4 billion aggregate principal amount of 11.500% First-Priority Senior Secured Notes due 2023.

Carnival also announced that the initial purchasers of its previously announced private offering of 5.75% Convertible Senior Notes due 2023 has exercised the remainder of their option to purchase an additional $62.5 million aggregate principal amount of the Convertible Notes. The offering of the additional Convertible Notes also closed today.

According to Carnival, thee Secured Notes and the related guarantees are secured by first-priority security interests in collateral, which, it said, includes 86 of the vessels currently owned or operated by the corporation.

Carnival stated that it expects to use the net proceeds from the offering of the Secured Notes and the offering of the Convertible Notes for general corporate purposes.

 

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