I don’t know what this means exactly but after doing some quick research it sounds like they’re trying to redeem the notes early to pay less in the long run because of the interest?
They’re also trying to repay up to 800 million to reduce their debt levels. That’s what I understand from the second part. Is that correct?
I apologise if I sound stupid but I’ve had a look for some of the terms and I’m just not able to wrap my head around them! I think it’s good, less debt is a good thing but do these “notes” mean that more shares are issued and bring more dilution?
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Carnival Launches $531.4 Million Senior Notes Offering
Carnival ($CCL, $CUK) said Tuesday that it has launched a private offering of 500 million euros ($531.4 million) of senior unsecured notes maturing in 2030.
The cruise operator said it will use the net proceeds, along with existing cash, to redeem its 500 million euros 7.625% senior unsecured notes due 2026 at a redemption price equal to 101.9% of the notes' principal amount plus interest. Carnival said it has already issued a conditional notice of redemption for the notes, to be redeemed by April 26.
As part of its ongoing debt reduction measures, Carnival said it also expects to start the marketing of a repricing transaction for its $2.3 billion first-priority senior secured term loan facility maturing in 2028 and $1.3 billion senior secured term loan facility maturing in 2027. The company said it expects to make up to $800 million partial prepayments of the outstanding amounts under the facilities.
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Source: MT Newswires
