Carnival Corp. shares were 12% higher at $8.16 after the company said its Carnival Holdings (Bermuda) Ltd. subsidiary has begun a private offering of $1.25 billion of senior priority notes due 2028.
The notes will be fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by the company, Carnival Plc and certain subsidiaries that guarantee substantially all of the company’s other indebtedness.
In connection with the offering of the notes, the company and its subsidiaries will contribute 12 unencumbered vessels to the issuer, with each of these vessels continuing to be operated under one of its subsidiaries’ brands.
The company expects to use the proceeds of the offering to make principal payments on debt and for general corporate purposes. The company may use all or a portion of the proceeds to temporarily repay amounts outstanding under its revolver.