Carnival Cruises 2004 Annual Report Download - page 22

Carnival Corporation & plc 19
Upon conversion, redemption or repurchase of the
1.75% Notes, the 2% Notes and the Zero-Coupon Notes,
we may choose to deliver Carnival Corporation common
stock, cash or a combination of cash and common stock
with a total value equal to the value of the consideration
otherwise deliverable.
Revolving Credit Facilities
Costa has a 257.5 million euro ($342 million U.S. dol-
lars at the November 30, 2004 exchange rate) unsecured
euro revolving credit facility, which expires in May 2006.
At November 30, 2004, this entire facility was available.
In March 2004, Carnival plc entered into a 600 million
euro ($798 million U.S. dollar at the November 30, 2004
exchange rate) unsecured 364-day multi-currency revolv-
ing credit facility, which currently bears interest at
eurolibor plus 30 basis points (“BPS”). This interest rate
spread over the base rate will vary based on changes to
Carnival plc’s senior unsecured credit rating. This facility
also has a nine BPS commitment fee on the undrawn
portion and expires in March 2005, but provides Carnival
plc with the option to extend the repayment date of the
then existing outstanding borrowings to June 2006. At
November 30, 2004, this entire facility was available.
In 2004, Carnival plc established U.S. dollar and multi-
currency commercial paper programs, which are sup-
ported by this 600 million euro revolving credit facility
and, accordingly, any amounts outstanding under these
commercial paper programs, none at November 30,
2004, will reduce the aggregate amount available under
the facility.
Carnival Corporation’s $1.4 billion unsecured multi-
currency revolving credit facility matures in June 2006.
This facility currently bears interest at USD Libor plus
20 BPS, which interest rate spread over the base rate
will vary based on changes to Carnival Corporation’s
senior unsecured debt ratings, and provides for an
undrawn facility fee of ten BPS. Carnival Corporation’s
U.S. dollar commercial paper program is supported by
this revolving credit facility and, accordingly, any amounts
outstanding under its commercial paper program, none
at November 30, 2004 and 2003, effectively reduce
the aggregate amount available under this facility. At
November 30, 2004, the entire facility was available.
These $1.4 billion and 600 million euro facilities and
other of our loan and derivative agreements, contain
covenants that require us, among other things, to main-
tain a minimum debt service coverage, minimum share-
holders’ equity and limits our debt to capital and debt
to equity ratios, and the amounts of our secured assets
and secured indebtedness. In addition, if our business
suffers a material adverse change or if other events of
default under our loan agreements are triggered, then
pursuant to cross default acceleration clauses, substan-
tially all of our outstanding debt and derivative contract
payables could become due and the underlying facilities
could be terminated. At November 30, 2004, we were
in compliance with all of our debt covenants.
At November 30, 2004, the scheduled annual maturi-
ties of our long-term debt was as follows (in millions):
Fiscal
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,281(a)
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,686(a)
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,058
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,435(a)
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,971
$7,572
(a) Includes $600 million of Carnival Corporation’s 2% Notes in
2005, $561 million of its Zero-Coupon Notes in 2006, and
$575 million of its 1.75% Notes in 2008, based in each case
on the date of the noteholders’ first put option.
Debt issuance costs are generally amortized to interest
expense using the straight-line method, which approxi-
mates the effective interest method, over the term of
the notes or the noteholders first put option date, which-
ever is earlier. In addition, all loan issue discounts are
amortized to interest expense using the effective interest
rate method over the term of the notes.