Carnival Corp has taken out nearly another $3bn in loans to pay off debt coming due in the near term.
The Arnold Donald-led owner of 104 ships on Friday announced the pricing of a first-priority senior secured term loan facility consisting of a $1.86bn tranche and an €800m ($898m) tranche, with a maturity of five years.
The US-dollar and euro tranches will be issued at prices equal to 96% of face value and bear yearly interest rate at Euribor plus 7.5%.
They will both be prepayable, in whole or in part, at the company's option at a price equal to face value for the first year after closing, 102% of face value for the second year after closing and par thereafter.
The facility's obligations will be guaranteed by Carnival plc and secured by the same collateral securing $4bn in 11.5% first-priority senior secured notes due 2023.
The term loan facility announced Friday is expected to close on 30 June, subject to customary closing conditions and the execution of definitive documentation.
Carnival and peer competitors Royal Caribbean Cruises and Norwegian Cruise Line Holdings have taken out billions of dollars in debt to stay afloat during fleet lay-ups begun in mid-March.
Carnival on 18 June posted an unprecedented second-quarter loss of $4.4bn.
