Carnival prearranges $2.1 billion replacement revolver for 2024

Chicago, March 1 – Carnival Corp. & plc arranged a new forward-starting $2.1 billion multicurrency revolving credit facility that will be in effect starting August 2024, according to a press release and an 8-K filing regarding the Feb. 28 agreement.

The new revolver will replace Carnival Corp.’s existing multicurrency revolver when it matures.

Carnival Holdings (Bermuda) II Ltd. will be the borrower on the one-year facility due Aug. 6, 2025, with two mutual one-year extension options available.

The new facility also contains an accordion feature, allowing for additional commitments up to an aggregate of $2.9 billion, the amount of the existing revolver.

Interest may be adjusted based on the company meeting certain carbon emissions goals.

The revolver will be guaranteed on an unsecured basis by Carnival Corp., Carnival plc and other subsidiaries.

In connection with entering into the new revolver, the company and its subsidiaries will contribute three unencumbered vessels to the borrower.

The new revolver was co-coordinated by Bank of America, BNP Paribas and JPMorgan. J.P. Morgan SE is the facilities agent.

PJT Partners served as independent financial adviser to Carnival Corp. & plc.

“The successful transaction is a direct reflection of our strong bank relationships and confidence in our continuing return to strong profitability, which we plan to utilize as a springboard to deleveraging and returning to investment grade,” said David Bernstein, chief financial officer of Carnival, in the news release.

Carnival is a Miami-based cruise operator.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.