Carnival Corporation & plc, the world’s largest cruise shipping company, has announced that its US listed and Panama domiciled holding company Carnival Corporation has priced the private offerings of $3.5 billion aggregate principal amount of 5.75% senior unsecured notes due 2027.

The offering of the notes is expected to close on February 16, 2021, subject to customary closing conditions.

“The Senior Unsecured Notes will pay interest semi-annually on March 1 and September 1 of each year, beginning on September 1, 2021, at a rate of 5.75% per year.  The Senior Unsecured Notes will be unsecured and will mature on March 1, 2027,” the company said in a statement.

“The Senior Unsecured Notes will be fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by Carnival plc and certain of the Corporation's and Carnival plc's subsidiaries that own or operate our vessels and material intellectual property and that guarantee certain of the Corporation's first-priority secured indebtedness, and the Corporation's second-priority secured indebtedness,” carnival said.

The net proceeds would be used to make scheduled principal payments on debt during 2021 and for general corporate purposes, including, without limitation, the financing or refinancing of a portion of the purchase price, rental payments, costs and expenses related to certain of our current and future property, plant and equipment (including leased assets and vessels) and their repair, replacement and improvements, as well as any other payments related to our vessels' ready-for-sea costs, in each case to the extent such amounts are not covered by the Corporation's existing and future export credit facilities,’ Carnival said.