The US dollar tranche will be issued at a price equal to 96% of its face value and will bear annual interest equal to adjusted LIBOR (with a 1% floor) plus 7.5%. The euro tranche will be issued at a price equal to 96% of its face value and will bear annual interest equal to EURIBOR (with a 0% floor) plus 7.5%.
Both tranches will be prepayable, in whole or in part, at Carnival’s option at a price equal to the face value plus a customary make-whole amount for the first year after closing, 102% of the face value for the second year after closing and par thereafter.
The obligations will be guaranteed by Carnival plc and the same subsidiaries that currently guarantee the company’s 11.5% first-priority senior secured notes due 2023 and will be secured on a first-priority basis by the same collateral that currently secures those notes.
The term loan facility is expected to close on June 30. Carnival intends to use the net proceeds for general corporate purposes, including the repayment of near-term debt maturities.