Carnival Completes $19B Refinancing, Cuts Debt $10B and Targets Sub-3x Leverage Ratio
Carnival completed a $19 billion refinancing plan within 12 months, reducing total debt by over $10 billion and simplifying its capital structure. It ended fiscal 2025 with a 3.4x net debt-to-adjusted EBITDA ratio, reinstated a $0.15 quarterly dividend and expects over $700 million in interest savings next year.
1. Refinancing Execution
Carnival completed a $19 billion refinancing plan in under 12 months, simplifying its capital structure, lowering interest costs and extending maturities across multiple debt tranches.
2. Balance Sheet Improvement
Total debt has fallen by more than $10 billion since its peak less than three years ago, driving the net debt-to-adjusted EBITDA ratio down to 3.4x at fiscal year-end 2025.
3. Credit Rating Upgrades and Cost Savings
The company achieved investment-grade status with Fitch and holds a one-notch-below-IG grade with S&P, with projected net interest expense reductions exceeding $700 million in fiscal 2026.
4. Dividend Reinstatement and Leverage Targets
Carnival reinstated a $0.15 quarterly dividend, reflecting cash flow confidence, and expects to reduce leverage below 3x net debt to EBITDA by the end of fiscal 2026, aided by a call to retire 18 million shares of convertible debt.