Carnival Corporation & plc, the Anglo-American cruise shipping group, said it has priced private offering of $2,405.5 million aggregate principal amount of 4.000% first-priority senior secured notes due 2028

“The offering of the New Notes is expected to close on July 26, 2021 subject to customary closing conditions,” the company said in a statement.

The new notes notes will pay interest semi-annually on February 1 and August 1 of each year, beginning on February 1, 2022, at a rate of 4.000% per year. They will mature on August 1, 2028.

Carnival expects to use the net proceeds from the offering of the New Notes to fund its previously announced tender offer to purchase up to $2,004,000,000 aggregate principal amount of 11.500% First Priority Senior Secured Notes due 2023 and the related consent solicitation, and the payment of accrued and unpaid interest on these notes accepted for purchase and related fees and expenses.

“The New Notes' 4.000% interest rate will replace existing debt carrying an 11.500% coupon and generate $135 million of interest savings annually,” the company said.