Carnival Cruises 2011 Annual Report Download - page 19

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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 long-term export credit committed ship financings, for which we have the option to draw in
euros and/or U.S. dollars depending on the facility, in order to pay for a portion of our ships’ purchase prices.
These commitments, if drawn, are generally 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.
At January 23, 2012, our committed ship financings are as follows:
Cruise Brands and Ships
Fiscal Year
Scheduled for
Funding Amount
(in millions)
North America
Carnival Cruise Lines
Carnival Breeze ...................................................... 2012 $ 560
Princess
Royal Princess ....................................................... 2013 538
Newbuild ........................................................... 2014 538
North America Cruise Brands ......................................... 1,636
EAA
AIDA
AIDAmar ........................................................... 2012 389
Newbuild ........................................................... 2013 318
Newbuild ........................................................... 2015 452
Newbuild ........................................................... 2016 452
P&O Cruises (UK)
Newbuild ........................................................... 2015 554
Costa
Newbuild ........................................................... 2014 522
EAA Cruise Brands ................................................. 2,687
$4,323
Revolving Credit Facilities
In 2011, concurrent with the early termination of our existing multi-currency revolving credit facility for $2.0
billion (comprised of $1.2 billion, €400 million and £200 million), Carnival Corporation, Carnival plc and certain
of Carnival plc’s subsidiaries entered into a five-year multi-currency revolving credit facility for $2.5 billion
(comprised of $1.6 billion, €450 million and £150 million) (the “Facility”). The Facility currently bears interest
at LIBOR/EURIBOR plus a margin of 65 bps. The margin will vary based on changes to Carnival Corporation’s
and Carnival plc’s long-term senior unsecured credit ratings. We are required to pay a commitment fee of 35% of
the margin per annum on any undrawn portion. If more than one-third or if more than two-thirds of the Facility is
drawn, we will incur an additional 15 bps or 30 bps utilization fee, respectively, on the total amount outstanding.
At November 30, 2011, we also had two other revolving credit facilities with an aggregate $161 million available
that mature through 2015. At November 30, 2011, $2.4 billion was available under our Facility and our other
revolving credit facilities, net of outstanding commercial paper.
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