Carnival Cruises 2014 Annual Report Download - page 20

NOTE 5 – Unsecured Debt
Long-term debt and short-term borrowings consisted of the following (in millions):
November 30, 2014 November 30,
Interest Rates
Maturities
Through 2014 (a) 2013 (a)
Long-Term Debt
Export Credit Facilities
Fixed rate (b) .................................. 4.2% to 5.5% 2020 $ 1,358 $ 1,684
Euro fixed rate (b) .............................. 3.8% to 4.5% 2025 340 408
Floating rate (c) ................................ 1.4% to 1.6% 2026 1,031 1,196
Euro floating rate (b)(d) ......................... 0.3% to 1.2% 2026 1,909 1,742
Bank Loans
Fixed rate (b)(e) ............................... - - - 650
Euro fixed rate (b) .............................. 3.9% 2021 221 276
Floating rate (b)(e)(f) ........................... 0.7% to 1.2% 2019 800 850
Euro floating rate (b)(g) ......................... 0.7% 2015 249 138
Private Placement Notes
Fixed rate .................................... 5.9% to 6.0% 2016 116 116
Euro fixed rate (b) .............................. 6.9% to 7.3% 2018 153 194
Publicly-Traded Notes
Fixed rate .................................... 1.2% to 7.1% 2028 2,219 2,219
Other ....................................... 3.8% to 7.3% 2030 26 27
Short-Term Borrowings
Euro bank loans (h) ............................. 1.3% 2015 13 60
U.S. dollar-denominated commercial paper (h) ....... 0.4% 2015 653 -
Total Debt ............................... 9,088 9,560
Less short-term borrowings ...................... (666) (60)
Less current portion of long-term debt .............. (1,059) (1,408)
Total Long-term Debt ...................... $7,363 $ 8,092
(a) The debt table does not include the impact of our foreign currency and interest rate swaps. At November 30,
2014, 67% and 33% (69% and 31% at November 30, 2013) of our debt was U.S. dollar and euro-
denominated, respectively, including the effect of foreign currency swaps. At November 30, 2014, 52% and
48% (59% and 41% at November 30, 2013) of our debt bore fixed and floating interest rates, respectively,
including the effect of interest rate swaps. Substantially all of our fixed rate debt can only be called or
prepaid by incurring additional costs. In addition, substantially all of our debt agreements, including our
main revolving credit facility, 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, 2014, we
believe we were in compliance with all of our debt covenants.
(b) Includes $2.4 billion of debt whose interest rates, and in the case of our main revolver its commitment fees,
would increase upon a downgrade in the long-term senior unsecured credit ratings of Carnival Corporation
or Carnival plc.
(c) In 2014, we repaid an aggregate of $590 million outstanding under two export credit facilities prior to their
maturities through May 2024. In addition, in 2014 we borrowed $554 million under an export credit facility,
the proceeds of which were used to pay for a portion of Regal Princess’ purchase price and is due in semi-
annual installments through May 2026.
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