Carnival Cruises 2012 Annual Report Download - page 82

Table of Contents
only be called or prepaid by incurring significant costs. In addition, 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 11) could become due, and all debt and derivative contracts could be terminated. At
November 30, 2012, we believe we were in compliance with all of our debt covenants.
(b) Includes $3.8 billion of debt whose interest rates, and in the case of our main revolver its commitment fees, would increase upon certain downgrades in
the long-term senior unsecured credit ratings of Carnival Corporation or Carnival plc.
(c) In 2012, we borrowed $560 million under an unsecured export credit facility, the proceeds of which were used to pay for a portion of Carnival Breeze’s
purchase price and is due in semi-annual installments through May 2024.
(d) In 2012, we borrowed $383 million under an unsecured euro-denominated export credit facility, the proceeds of which were used to pay for a portion of
AIDAmar’s purchase price and is due in semi-annual installments through May 2024.
(e) 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.
(f) In 2012, we borrowed $200 million under a bank loan, which is due in 2014. This bank loan was used to repay an existing $200 million unsecured
fixed rate bank loan at maturity in 2012.
At November 30, 2012, the scheduled annual maturities of our debt were as follows (in millions):
Fiscal
2013 2014 2015 2016 2017 Thereafter Total
Short-term borrowings $56 $56
Long-term debt 1,678 $1,615 $1,269 $848 $593 $2,843 8,846
$1,734 $1,615 $1,269 $848 $593 $2,843 $8,902
In December 2012, we issued $500 million of unsecured publicly-traded notes, which bear interest at 1.9% and are due in 2017. We are using the net proceeds
of these notes for general corporate purposes, including repayments of portions of debt facilities maturing in 2013.
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 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 22, 2013, our committed ship financings are as follows:
Cruise Brands and Ships
Fiscal Year
Scheduled for
Funding Amount
(in millions)
North America
Princess
Royal Princess 2013 $ 523
Regal Princess 2014 523
North America Cruise Brand 1,046
EAA
AIDA
AIDAstella 2013 310
Newbuild 2015 440
Newbuild 2016 440
P&O Cruises (UK)
Newbuild 2015 539
Costa
Costa Diadema 2014 508
EAA Cruise Brands 2,237
$3,283
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