Carnival Cruises 2009 Annual Report Download - page 19

Debt issuance costs are generally amortized to interest expense using the straight-line method, which
approximates the effective interest method, over the term of the notes or to the noteholders first put option date,
whichever is earlier. In addition, all debt issue discounts are amortized to interest expense using the effective
interest rate method over the term of the notes.
Committed Ship and Other Financings
We have unsecured long-term export credit committed ship financings, for which we have the option to
draw in order to pay for a portion of certain ships’ purchase prices. These commitments, if drawn, are repayable
semi-annually over at least a 12-year period, and we have the option to cancel each one up until 60 days prior to
the underlying ship’s delivery date. At November 30, 2009, our committed ship financings are as follows:
Ship
Date
Committed
Fiscal Year
Scheduled for
Funding Amount
(in millions)
AIDAblu .................................................... 10/08 2010 $ 393
AIDAsol ..................................................... 12/08 2011 431
AIDA Newbuild .............................................. 12/08 2012 437
Costa Deliziosa ............................................... 6/09 2010 299
Costa Favolosa ............................................... 6/09 2011 225
Queen Elizabeth .............................................. 11/09 2010 527
Carnival Magic ............................................... 11/09 2011 615
Carnival Newbuild ............................................ 11/09 2012 560
Total ....................................................... $3,487
In addition at November 30, 2009, we also have $144 million available under another committed financing.
Revolving Credit Facilities
Under our principal revolver, we are required to pay a commitment fee of 30% of the margin per annum on
any undrawn portion. If more than 50% of this revolver is drawn, we will incur an additional 5 basis points
(“bps”) utilization fee on the total amount outstanding. This revolver matures in October 2012, except for $39
million which matures in October 2011. In addition, at November 30, 2009 we had five other revolving credit
facilities, of which three facilities with an aggregate principal amount of $350 million were entered into in
2009. These facilities have a weighted-average undrawn annual commitment fee of 35 bps, serve as back-up
liquidity to our principal revolver and mature through 2012. At November 30, 2009, $2.4 billion was available
under all these revolvers.
Convertible Notes
At November 30, 2009, Carnival Corporation’s 2% convertible notes (“2% Notes”) are convertible into
15.2 million shares of Carnival Corporation common stock. The 2% Notes are convertible at a conversion price
of $39.14 per share, subject to adjustment, during any fiscal quarter for which the closing price of the Carnival
Corporation common stock is greater than $43.05 per share for a defined duration of time in the preceding fiscal
quarter. The conditions for conversion of the 2% Notes were not satisfied during 2009 and 2008. Only a nominal
amount of our 2% Notes have been converted since their issuance in 2000.
On April 15, 2011, the 2% noteholders may require us to repurchase all or a portion of the 2% Notes at their
face values plus any unpaid accrued interest. In addition, we currently may redeem all or a portion of the
outstanding 2% Notes at their face value plus any unpaid accrued interest, subject to the noteholders’ right to
convert. Upon conversion, redemption or repurchase of the 2% Notes, we may choose to deliver Carnival
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