Carnival Cruises 2010 Annual Report Download - page 18

(a) All interest rates are as of the latest balance sheet date for which there is an outstanding debt balance. The
debt table does not include the impact of our foreign currency and interest rate swaps. At November 30,
2010, 60%, 37% and 3% (59%, 38% and 3% at November 30, 2009) of our debt was U.S. dollar, euro and
sterling-denominated, respectively, including the effect of foreign currency swaps. Substantially all of our
debt agreements contain one or more financial covenants that require us, among other things, to maintain
minimum debt service coverage and minimum shareholders’ equity and to limit our debt to capital and debt
to equity ratios and the amounts of our secured assets and secured and other indebtedness. Generally, if an
event of default under any debt agreement occurs, then pursuant to cross default acceleration clauses,
substantially all of our outstanding debt and derivative contract payables (see Note 10) could become due,
and all debt and derivative contracts could be terminated. At November 30, 2010, we believe we were in
compliance with all of our debt covenants.
(b) Includes an aggregate $3.7 billion of debt whose interest rate will increase upon a reduction in the senior
unsecured credit ratings of Carnival Corporation or Carnival plc from BBB+/A3 to BBB/Baa2 and will
increase further upon additional credit rating reductions, exclusive of the amount shown in Note (i).
(c) In 2010, Costa Cruises, one of our Italian subsidiaries, borrowed $246 million under an unsecured euro-
denominated export credit facility, which bears interest at 3.75% and is due in semi-annual installments
through 2025.
(d) In 2010, we repaid $78 million of an unsecured floating rate export credit facility that was borrowed to pay
for a portion of Seabourn Odyssey’s purchase price prior to its maturity dates through 2014.
(e) In 2010, we borrowed $445 million under an unsecured floating rate export credit facility, the proceeds of
which were used to pay for a portion of Queen Elizabeth’s purchase price. This facility bears interest at
LIBOR plus 160 basis points (“bps”) and is due in semi-annual installments through 2022.
(f) In 2010, we borrowed $371 million under an unsecured euro-denominated export credit facility, the
proceeds of which were used to pay for a portion of AIDAblu’s purchase price. This facility bears interest at
EURIBOR plus 50 bps and is due in semi-annual installments through 2022.
(g) In 2010, we repaid $390 million of an unsecured floating rate euro-denominated export credit facility that
was borrowed to pay for a portion of Costa Pacifica’s purchase price prior to its maturity dates through
2019.
(h) Includes two facilities that aggregate to $650 million, which currently carry fixed interest rates. However,
each facility can be switched in the future to a floating interest rate at the option of the lenders.
(i) Includes an aggregate $356 million of debt whose interest rate, and in the case of the revolver its
commitment fees, will increase upon a reduction in the senior unsecured credit ratings of Carnival
Corporation or Carnival plc from A3 to Baa1 and will increase further upon additional credit rating
reductions.
(j) In 2010, we repaid a $100 million unsecured floating rate bank loan prior to its maturity in 2012.
(k) In 2010, we borrowed $132 million under an unsecured euro-denominated bank loan, which bears interest at
EURIBOR plus 125 bps and is due in February 2014.
(l) Carnival Corporation, Carnival plc and certain of Carnival plc’s subsidiaries are parties to our principal
revolver for $2.0 billion (comprised of $1.2 billion, €400 million and £200 million). Under this revolver, we
can draw loans in U.S. dollars, euros and sterling. Its availability is reduced by the amount of our
commercial paper, which was $696 million at November 30, 2010.
At November 30, 2010, the scheduled annual maturities of our debt were as follows (in millions):
Fiscal
2011 2012 2013 2014 2015 Thereafter
Short-term borrowings .......................... $ 740
Long-term debt ............................... 613 $1,159 $1,715 $1,006 $1,128 $3,003
$1,353 $1,159 $1,715 $1,006 $1,128 $3,003
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