Carnival Corporation & plc, the Anglo- American cruise shipping group, said that Carnival Holdings (Bermuda) Limited, a subsidiary of Carnival Corporation, has priced the private offering of $2.03 billion aggregate principal amount of 10.375% Senior Priority Notes due 2028.

“The aggregate principal amount of Senior Priority Notes to be issued was increased to $2.03 billion from $1.25 billion due to strong investor demand,” Carnival said in a statement.

“The Company expects to initially use the net proceeds of the offering to repay amounts drawn under the revolving credit facility, which remains available for future principal payments on debt and for general corporate purposes,” it said.

The notes would pay interest semi-annually on May 1 and November 1 of each year, beginning on May 1, 2023, at a rate of 10.375% per year, are callable beginning May 1, 2025 and priced at 98.465% of their face value. They would mature on May 1, 2028, it continued.

The Senior Priority Notes will be unsecured and will be fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by the Company, Carnival plc and certain of the Company's and Carnival plc's subsidiaries that guarantee substantially all of the Company's other indebtedness. The offering of the Senior Priority Notes is expected to close on October 25, 2022, subject to customary closing conditions.

In connection with the offering of the Senior Priority Notes, the Company and its subsidiaries would contribute 12 unencumbered vessels to Carnival Holdings (Bermuda) Limited, with each of these vessels continuing to be operated under one of the Company's, Carnival plc's or one of their subsidiaries' brands, the company said.