...July 21, 2021 SAN FRANCISCO (S&P Global Ratings) July 21, 2021--S&P Global Ratings today assigned its '##-' issue-level rating to Carnival Corp.'s proposed $2.41 billion first-priority senior secured notes due 2028. The recovery rating is '1', indicating our expectation for very high (90%-100%; rounded estimate 95%) recovery for lenders in the event of a default. Carnival plans to use proceeds from the notes issuance and cash on the balance sheet to repurchase 50.1% of its existing $4 billion first-priority senior secured notes due 2023 through a tender offer, and to pay tender premiums, accrued interest, and fees and expenses. Since the transaction is largely debt for debt, it does not impact our rating or outlook on Carnival. We expect the transaction will reduce Carnival's interest burden because we believe the interest rate on the proposed secured notes will likely be significantly lower than the 11.5% rate on the secured notes it is repurchasing. The transaction will also modestly...
