Carnival lifts term loan to $2.76 billion equivalent, widens spread

By Sara Rosenberg

New York, June 26 – Carnival Corp. upsized its U.S. dollar and euro term loan B to roughly $2.76 billion equivalent from $1.5 billion equivalent and increased pricing to Libor/Euribor plus 750 basis points from talk in the range of Libor/Euribor plus 675 bps to 700 bps, according to a market source.

Also, tranche sizes firmed up, with the U.S. term loan sized at $1.86 billion and the euro term loan sized at €800 million, the source said. At launch, the euro tranche was described as a minimum of €500 million.

Furthermore, the 50 bps MFN was revised to life from 12 months.

As before, the U.S. piece has a 1% Libor floor, the euro piece has a 0% floor, and both tranches have an original issue discount of 96 and call protection of non-callable for one year then at 102 in year two.

J.P. Morgan Securities LLC, Goldman Sachs, BofA Securities, Inc., BNP Paribas Securities Corp., Lloyds, NatWest, Citigroup Global Markets Inc., Mizuho, Banca IMI, HSBC, Santander, Deutsche Bank Securities Inc., SMBC and Siebert are the leads on the deal.

Proceeds will be used for general corporate purposes.

Closing is expected on Tuesday.

Carnival is a Miami-based cruise line.

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