Carnival Cruises 2011 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,
2011, 56%, 41% and 3% (60%, 37% and 3% at November 30, 2010) 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, 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, 2011, we believe we were in compliance with all of our debt covenants.
(b) Includes an aggregate $3.5 billion of debt whose interest rate would increase upon a downgrade of the long-
term senior unsecured credit ratings of Carnival Corporation or Carnival plc from BBB+ to BBB, or A3 to
Baa2, and will increase further upon additional credit rating downgrades, exclusive of the amount shown in
Note (g).
(c) In 2011, we borrowed $583 million under an unsecured export credit facility, the proceeds of which were
used to pay for a portion of Carnival Magic’s purchase price. This facility bears interest at LIBOR plus a
margin of 160 basis points (“bps”) and is due in semi-annual installments through April 2023.
(d) In 2011, we repaid $300 million of an unsecured floating rate export credit facility that was borrowed to pay
for a portion of Queen Elizabeth’s purchase price prior to its maturity dates through 2022.
(e) In 2011, we borrowed $406 million under an unsecured euro-denominated export credit facility, the
proceeds of which were used to pay for a portion of AIDAsol’s purchase price. This facility bears interest at
EURIBOR plus a margin of 20 bps and is due in semi-annual installments through March 2023. In addition,
in 2011 Costa borrowed $209 million under an unsecured euro-denominated export credit facility, which
bears interest at EURIBOR plus a margin of 98 bps and is due in semi-annual installments through October
2026.
(f) Includes a $150 million bank loan that currently carries a fixed interest rate. However, the loan can be
converted to a floating interest rate at the option of the lenders.
(g) Includes an aggregate $600 million of bank loans whose interest rate, 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 from A3 to Baa1, and will increase further upon additional credit
rating downgrades.
(h) In 2011, we repaid $150 million of an unsecured floating rate bank loan prior to its 2013 maturity date. In
addition, in 2011 we borrowed an aggregate $500 million under four unsecured floating rate bank loans that
mature through October 2016.
(i) In 2011, we repaid $136 million of an unsecured floating rate euro-denominated bank loan prior to its 2014
maturity date.
At November 30, 2011, the scheduled annual maturities of our debt were as follows (in millions):
Fiscal
2012 2013 2014 2015 2016 Thereafter Total
Short-term borrowings .................... $ 281 $ 281
Long-term debt ......................... 1,019 $1,624 $1,557 $1,195 $780 $2,897 9,072
$1,300 $1,624 $1,557 $1,195 $780 $2,897 $9,353
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