Carnival Corp. is promoting $2.4 billion of latest junk bonds to refinance debt the cruise ship firm took on final 12 months, when it was compelled to pay excessive rates of interest amid doubts about its means to climate the pandemic.

Pricing discussions on the brand new debt are within the 4%-4.25% vary and mirror the sturdy demand for high-yield bonds as traders hunt for larger returns. That will slash borrowing prices for Carnival as a result of the proceeds will fund a suggestion to purchase again about half of the 11.5% coupon debt the corporate issued in April 2020.