Carnival launches $2.75 billion of term loans at SOFR plus 275 bps

By Sara Rosenberg

New York, April 16 – Carnival Corp. was scheduled to hold a lender call at 10 a.m. ET on Tuesday to launch a $1 billion term loan due 2027 and a $1.748 billion term loan due 2028, according to a market source.

Both term loans are talked at SOFR plus 275 basis points with a 0.75% floor and an original issue discount of 99.875 to par, the source said.

The term loans have 101 soft call protection for six months.

JPMorgan Chase Bank is the left lead on the deal.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to reprice an existing 2027 term loan down from SOFR plus 300 bps with a 0.75% floor and an existing 2028 term loan down from SOFR plus 325 bps with a 0.75% floor.

In connection with this transaction, the 2027 term loan is being paid down from $1.3 billion and the existing 2028 term loan is being down from $1.248 billion.

The company also announced on Tuesday an offering of €500 million of senior notes due 2030 to refinance its existing €500 million 7.625% senior notes due 2026.

Carnival is a Miami-based cruise operator.

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