Carnival sets U.S. term B at Libor plus 300 bps, flexes euro loan

By Sara Rosenberg

New York, May 26 – Carnival Corp. firmed pricing on its $1.9 billion senior secured term loan B due June 30, 2025 at Libor plus 300 basis points, the low end of revised talk of Libor plus 300 bps to 325 bps and down from initial talk in the range of Libor plus 375 bps to 400 bps, according to a market source.

Also, the company reduced pricing on its €794 million senior secured term loan B due June 30, 2025 to Euribor plus 375 bps from initial talk at launch in the range of Euribor plus 400 bps to 425 bps, the source said.

The U.S. term loan still has a 0.75% Libor floor, the euro term loan still has a 0% floor, and both loans still have an original issue discount of 99.75 and 101 hard call protection for one year.

Previously in syndication, the original issue discount on both term loans was tightened from 99.5.

JPMorgan Chase Bank and Barclays are leading the deal, with JPMorgan the left lead on the U.S. term loan and Barclays the left lead on the euro term loan. JPMorgan is the administrative agent.

Commitments for the euro term loan were scheduled to be due at 7 a.m. ET on Wednesday, the source added. Books for the U.S. term loan closed on Tuesday.

Proceeds will be used to reprice an existing U.S. term loan down from Libor plus 750 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 750 bps with a 0% floor.

Carnival is a Miami-based cruise operator.

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