Largest revaluation of a carnival object in the fixed-term loan market B



“It was an incredibly successful deal,” said CFO David Bernstein. “The subscription was significantly oversubscribed, which is unusual in the B loan market.

“This was the largest change in the term loan revaluation ever achieved by any company in the B term loan market … Obviously, this transaction is a confirmation of our bright future and their confidence in our management team.”

As previously reportedthe dollar portion of this $ 2.8 billion credit facility now bears an interest rate of LIBOR plus 3% margin, 4.5% less than the LIBOR margin before the interest rate revision. The euro portion of the loan now has an interest rate of EURIBOR plus 3.75%, which is 3.75% less than the previous EURIBOR price.

Using additional refinancing opportunities

With $ 9.3 billion in cash and short-term investments, Carnival believes it has enough liquidity to return to full passenger travel by the spring of 2022.

Therefore, as Bernstein said, “given the support of debt capital market investors and commercial banks, we will use additional refinancing opportunities to significantly reduce our interest expense and extend maturities.”

During Thursday, Carnival Corp. call about incomeCEO Arnold Donald thanked Bernstein and the entire finance team for their “very successful efforts in helping us manage the balance sheet.”


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