Carnival Cruises 2013 Annual Report Download - page 72

Table of Contents
NOTE 5 – Unsecured Debt
Long-term debt and short-term borrowings consisted of the following (in millions):
November 30, 2013 November 30,
Interest Rates
Maturities
Through 2013(a) 2012(a)
Long-Term Debt
Export Credit Facilities
Fixed rate (b) 4.2% to 5.5% 2020 $1,684 $ 2,009
Euro fixed rate (b) 3.8% to 4.5% 2025 408 423
Floating rate (c)(d) 1.4% to 1.9% 2025 1,196 1,303
Euro floating rate (b)(e) 0.2% to 1.3% 2026 1,742 1,516
Bank Loans
Fixed rate (b) 2.5% to 4.4% 2016 650 650
Euro fixed rate (b) 3.9% 2021 276 296
Floating rate (b)(f) 0.8% to 1.4% 2018 850 700
Euro floating rate (b)(g) 0.8% 2014 138 132
Private Placement Notes
Fixed rate 5.9% to 6.0% 2016 116 116
Euro fixed rate (b) 6.9% to 7.3% 2018 194 185
Publicly-Traded Notes
Fixed rate (d)(h)(i) 1.2% to 7.1% 2028 2,219 517
Euro fixed rate - - - 971
Other 3.8% to 7.3% 2030 27 28
Short-Term Borrowings
Euro bank loans (j) 1.9% 2014 60 56
Total Debt 9,560 8,902
Less short-term borrowings (60) (56)
Less current portion of long-term debt (1,408) (1,678)
Total Long-term Debt $8,092 $7,168
(a) The debt table does not include the impact of our foreign currency and interest rate swaps. At November 30, 2013, 69% and 31% (58% and 42% at
November 30, 2012) of our debt was U.S. dollar and euro-denominated, respectively, including the effect of foreign currency swaps. Substantially all of
our fixed rate debt can only be called or prepaid by incurring additional 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 10) could become due, and all debt and derivative contracts could be terminated. At
November 30, 2013, we believe we were in compliance with all of our debt covenants.
(b) Includes $3.4 billion of debt whose interest rates, 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.
(c) In 2013, we borrowed $526 million under an export credit facility, the proceeds of which were used to pay for a portion of Royal Princess’ purchase
price and is due in semi-annual installments through May 2025.
(d) In 2013, we issued $500 million of publicly-traded notes, which bear interest at 1.2% and are due in February 2016. The proceeds were used to repay a
like amount of floating rate export credit facilities prior to their maturity dates through 2022.
(e) In 2013, we borrowed $311 million under a euro-denominated export credit facility, the proceeds of which were used to pay for a portion of AIDAstella’s
purchase price and is due in semi-annual installments through March 2025.
(f) In 2013, we borrowed $150 million under a floating rate bank loan, which is due in November 2018. We used the net proceeds of this loan for general
corporate purposes.
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