Carnival Cruises 2004 Annual Report Download - page 20

Carnival Corporation & plc 17
Note 6—Debt
Short-Term Borrowings
Short-term borrowings consisted of U.S. dollar and euro variable rate, unsecured notes due to banks, bearing a
weighted-average interest rate of 2.4% and 1.3% at November 30, 2004 and 2003, respectively.
Long-Term Debt
Long–term debt consisted of the following (in millions):
November 30,
2004(a) 2003(a)
Secured
Floating rate notes, collateralized by four ships, bearing interest from libor plus 1.13% to libor
plus 1.29% (3.0% to 3.6% at November 30, 2004) and libor plus 1.25% to libor plus
1.29% (2.24% and 2.33% at November 30, 2003), due through 2015(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 904 $ 631
Euro floating rate note, collateralized by one ship, bearing interest at euribor plus 0.5% (2.75%
at November 30, 2004 and 2003), due through 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 115
Fixed rate notes, collateralized by two ships, bearing interest at 5.4% and 5.5%, due through 2016(b) . . . . . . . . . 381
Euro fixed rate note, collateralized by one ship, bearing interest at 4.74%, due through 2012 . . . . . . . . . . . . . . . 183 182
Capitalized lease obligations, collateralized by two ships, implicit interest at 3.66%, due through 2005 . . . . . . . . 110 115
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Total Secured. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,682 1,046
Unsecured
Fixed rate notes, bearing interest at 3.75% to 7.2% and 3.75% to 7.7% at
November 30, 2004 and 2003, respectively, due through 2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,039 2,123
Euro floating rate notes, bearing interest at euribor plus 0.25% to euribor plus 1.29%
(2.4% to 3.5% and 2.4% to 3.9% at November 30, 2004 and 2003, respectively), due through 2008. . . . . . . . 1,265 1,129
Euro revolving credit facilities, bearing interest at euribor plus 0.50% and eurolibor plus 0.98%
(2.6% and 3.2% at November 30, 2003)(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
Sterling fixed rate notes, bearing interest at 5.63%, due in 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415 355
Euro fixed rate notes, bearing interest at 5.57%, due in 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399 353
Floating rate note, bearing interest at libor plus 1.33% (2.45% at November 30, 2003)(d) . . . . . . . . . . . . . . . . . . . 244
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 44
Convertible notes, bearing interest at 2%, due in 2021, with first put option in 2005 . . . . . . . . . . . . . . . . . . . . . . 600 600
Zero-coupon convertible notes, net of discount, with a face value of $1.05 billion, due in 2021,
with first put option in 2006. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 561 541
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
Total Unsecured. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,890 6,264
7,572 7,310
Less portion due within one year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,281) (392)
$ 6,291 $6,918
(a) All borrowings are in U.S. dollars unless otherwise noted. Euro and sterling denominated notes have been translated to U.S. dollars
at the period-end exchange rates. At November 30, 2004 and 2003, 59%, 31% and 10% of our debt was U.S. dollar, euro and
sterling denominated, respectively, including the effect of foreign currency swaps. In addition, at November 30, 2004, 68% of the
interest cost on our long-term debt was fixed (60% at November 30, 2003) and 32% was variable (40% at November 30, 2003),
including the effect of our interest rate swaps. The deeds of guarantee between Carnival Corporation and Carnival plc, or alterna-
tively standalone guarantees in lieu of utilization of these deeds of guarantee, effectively provide for the cross guaranteeing of all
Carnival Corporation and Carnival plc indebtedness and other monetary obligations (see Note 3).
(b) In February and May 2004, we borrowed an aggregate of $739 million to finance a portion of the Diamond Princess and Sapphire
Princess purchase prices, pursuant to committed financing arrangements. These loans have both a fixed and variable interest rate
component, mature through May 2016, and had a weighted-average interest rate of 4.4% at November 30, 2004.
(c) In March 2004, Carnival plc repaid, prior to its maturity date, the outstanding amounts under one of its subsidiary’s $710 million
revolving credit facilities, which facilities were then terminated prior to their September 2005 maturity dates.
(d) In March 2004, we extinguished $237 million of unsecured debt before its July 2008 maturity date.