Carnival Cruises 2014 Annual Report Download - page 21

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(d) In 2014, we borrowed $498 million under a euro-denominated export credit facility, the proceeds of which
were used to pay for a portion of Costa Diadema’s purchase price and is due in semi-annual installments
through October 2026.
(e) In 2014, we restructured two floating rate bank loan facilities that had an aggregate outstanding balance of
$250 million and were previously due through 2016. The restructuring converted the terms into perpetual
one-year maturities and added a $150 million tranche, which was used to repay a portion of a $500 million
fixed rate bank loan in 2014 prior to its 2015 maturity date. We can terminate this facility at any time upon
three days notice, and the bank can terminate the facility at any time upon one-year’s notice.
(f) In 2014, we borrowed $150 million under a floating rate bank loan, which is due in September 2019. We
used the net proceeds of this loan for general corporate purposes.
(g) In 2014, we borrowed $275 million under a euro-denominated floating rate revolving bank loan facility, the
proceeds of which were used for general corporate purposes. This facility has a perpetual term although we
can terminate it at any time, and the bank can terminate the facility at any time upon nine months notice.
(h) The interest rate associated with our short-term borrowings represents an aggregate-weighted average
interest rate.
At November 30, 2014, the scheduled annual maturities of our debt were as follows (in millions):
Fiscal
2015 2016 2017 2018 2019 Thereafter Total
Short-term borrowings ..................... $ 666 $ - $ - $ - $ - $ - $ 666
Long-term debt ........................... 1,059 1,785 634 1,302 685 2,957 8,422
$1,725 $1,785 $634 $1,302 $685 $2,957 $9,088
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 debt. 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 Financings
We have unsecured euro and U.S. dollar long-term export credit committed ship financings in order to pay for a
portion of our ships’ purchase prices. These commitments, if drawn, are repayable semi-annually over 12 years.
We have the option to cancel each one at specified dates prior to the underlying ship’s delivery date.
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