Carnival Cruises 2007 Annual Report Download - page 18

CARNIVAL CORPORATION & PLC | 15
NOTE 5—DEBT
Long-term debt and short-term borrowings consisted of the following (in millions):
November 30,
2007(a) 2006(a)
Secured Long-Term Debt
Floating rate notes, collateralized by four ships, bearing interest from LIBOR plus 1.13% to LIBOR plus 1.29%
(5.9% to 6.7% at 2007 and 6.5% to 6.8% at 2006), due through 2015(b) ........................................ $ 556 $ 672
Fixed rate notes, collateralized by two ships, bearing interest at 5.4% and 5.5%, due through 2016(b) ................... 378 379
Euro floating rate note, collateralized by one ship, bearing interest at EURIBOR plus 0.5%
(5.31% at 2007 and 4.0% at 2006), due through 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 43
Euro fixed rate note, collateralized by one ship, bearing interest at 4.74% .......................................... 134
Other ................................................................................................ 21
Total Secured ..................................................................................... 952 1,229
Unsecured Long-Term Debt and Short-Term Borrowings
Revolving credit facility, bearing interest at LIBOR plus 0.175% (4.5% at 2007)(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,019
Fixed rate notes, bearing interest at 3.75% to 7.2%, due through 2028(d)(e) ........................................ 2,793 2,542
Euro fixed rate notes, bearing interest at 4.4% to 4.74% in 2007 and 4.4% in 2006, due through 2013 .................. 1,230 985
Euro floating rate notes, bearing interest at EURIBOR plus 0.18% to EURIBOR plus 0.33%
(4.47% to 4.83% at 2007 and 3.83% at 2006), due through 2019(e) ............................................ 879 486
Sterling fixed rate notes, bearing interest at 5.63%, due in 2012 ................................................. 437 415
Sterling floating rate note, bearing interest at GBP LIBOR plus 0.33% (5.52% at 2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322
Other ................................................................................................ 31 34
Convertible notes, bearing interest at 2%, due in 2021, with next put option in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595 599
Convertible notes, bearing interest at 1.75%, net of discount, with a face value of $889 million,
due in 2033, with first put option in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 575 575
Zero-coupon convertible notes, net of discount, with a face value of $378 million at 2007 and
$386 million at 2006, due in 2021, with next put option in 2008 ............................................... 226 222
Total Unsecured Long-Term Debt .................................................................... 7,785 6,180
U.S. bank loans and commercial paper, with weighted-average interest rates of 4.8% at 2007 and 5.4% at 2006 . . . . . . . . . 15 381
Euro bank loans with weighted-average interest rates of 4.3% at 2007 and 3.6% at 2006 ............................ 100 57
Total Unsecured Short-Term Borrowings ............................................................. 115 438
Total Unsecured .................................................................................. 7,900 6,618
Total Debt ........................................................................................ 8,852 7,847
Less short-term borrowings .............................................................................. (115) (438)
Less current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,028) (1,054)
Less convertible debt subject to current put options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,396)
Total Long-Term Debt .............................................................................. $ 6,313 $ 6,355
(a) All interest rates are as of year ends. At November 30, 2007, 53%, 37% and 10%, (57%, 29% and 14% at November 30, 2006) of our debt was U.S. dollar,
Euro and Sterling-denominated, respectively, including the effect of foreign currency swaps. At November 30, 2007 and 2006, 69% and 31% (68% and 32% at
November 30, 2006) of our debt bore fixed and variable interest rates, including the effect of interest rate swaps, respectively.
(b) A portion of two Princess ships has been financed with borrowings having both fixed and variable interest rate components.
(c) We do not intend to repay €250 million and €185 million (aggregate of $645 million U.S. dollars at the November 30, 2007 exchange rate) of our outstanding revolv-
ing credit facility debt prior to 2010 and 2012, respectively, and since we have the ability to refinance this on a long-term basis, it has been classified as long-term
debt in the accompanying November 30, 2007 balance sheet.
(d) In fiscal 2007, we borrowed $360 million, $380 million, €234 million ($347 million U.S. dollars at the November 30, 2007 exchange rate) and $434 million under
unsecured term loan facilities, which proceeds were used to pay a portion of the Carnival Freedom, Emerald Princess, AIDAdiva and Queen Victoria purchase
prices, respectively. These facilities bear an aggregate weighted-average interest rate of 4.5% at November 30, 2007, and are repayable in semi-annual installments
through 2019.
(e) Includes an aggregate $1.32 billion of debt whose interest rate may increase upon reductions in the senior unsecured credit ratings of Carnival Corporation or
Carnival plc.