Carnival Corporation Saves $120 Million Annually with Debt Pre-payment and Refinancing

Carnival Corporation & plc plans to pre-pay $1.2 billion of debt and initiate a refinancing transaction. The company intends to raise $1.0 billion through a new senior secured first lien term loan and an additional $500 million of secured debt. The proceeds will be used to repay a portion of the company's existing term loan facility. After the refinancing, Carnival plans to redeem $1.2 billion of its highest-cost debt, resulting in annual interest expense savings of over $120 million. The company expects its year-end debt balance to be less than $32.0 billion.