Carnival Corp plans to issue $1.25bn in notes in an ongoing effort to make principal payments on $35bn in debt that it incurred while the pandemic shut down the cruise sector for more than two years. The Josh Weinstein-led owner of 95 cruise ships on Tuesday began a private offering of senior priority notes in that amount that will mature in 2028. Miami-based Carnival said it will back the bonds with 12 unencumbered vessels.

New York-listed Carnival expects to use the offering’s net proceeds make principal payments on debt and for general corporate purposes. The interest rate on the new bonds has not been announced.

Carnival’s total debt stood at $34.8bn as of 31 August, according to a document filed with the Securities and Exchange Commission. At that time, the cruise shipowner had $27.9bn in debt maturing by the end of 2029, including $991m coming due in the fourth quarter of this year. It had $2.38bn maturing in 2023 and $2.26bn that needs to be paid off by the end of 2024. Carnival’s shares have risen 11% to $8.07 per share by midday trading on Tuesday.

The company, like peers Royal Caribbean Group and Norwegian Cruise Line Holdings, has yet to post a profit since before the pandemic, as they all face billions of dollars in debt. Carnival posted a $770m loss for the third quarter ended 31 August. Royal Caribbean reported a $522m loss for its second quarter ended 30 June while dealing with $17.8bn of long-term debt. Norwegian posted a $509m loss for the second quarter while holding a debt position of $13.2bn.