: Carnival to save $120 mln a year by retiring $1.2 bln in ‘high-cost’ debt

Carnival Corp. CCL stock was up 1.1% in premarket trades after the cruise operator said it would retire $1.2 billion of its highest-cost debt, “given the confidence we have in our business and its cash flow generation.” The move will save Carnival about $120 million a year in interest expense. The company will issue a new $1 billion senior secured first lien term loan B facility, expected to mature in 2027. Carnival Corp. may raise an additional $500 million of other secured debt maturing in 2029. The proceeds will be used to repay a portion of borrowings under its existing first-priority senior secured term loan facility maturing in 2025. Carnival plans to redeem all of the its 10.5% second-priority senior secured notes due 2026 and 10.125% second-priority senior secured notes due 2026.

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