Carnival Cruises 2013 Annual Report Download - page 73

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Table of Contents
(g) In 2013, we entered into a $265 million euro-denominated floating rate revolving bank loan facility. This facility has a perpetual term, although we can
terminate it at any time and the bank can terminate the facility at any time upon nine months notice. The facility can be drawn beginning in May 2014.
(h) In 2013, we issued $500 million of publicly-traded notes, which bear interest at 1.9% and are due in December 2017. We used the net proceeds of these
notes for general corporate purposes, including repayments of portions of debt facilities maturing in 2013.
(i) In 2013, we issued $700 million of publicly-traded notes, which bear interest at 4.0% and are due in October 2020. We intend to use the net proceeds of
these notes for general corporate purposes, which may include repaying portions of various debt facilities maturing through May 2014.
(j) The interest rate associated with our short-term borrowings represents an aggregate-weighted average interest rate.
At November 30, 2013, the scheduled annual maturities of our debt were as follows (in millions):
Fiscal
2014 2015 2016 2017 2018 Thereafter Total
Short-term borrowings $ 60 $ 60
Long-term debt 1,408 $1,403 $1,537 $627 $1,301 $3,224 9,500
$1,468 $1,403 $1,537 $627 $1,301 $3,224 $9,560
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 euro and U.S. dollar long-term export credit committed ship financings 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, 2014, 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 Vista (a) 2016 $ 520
Holland America Line
Newbuild (a) 2016 408
Princess
Regal Princess 2014 547
North America Cruise Brands 1,475
EAA
AIDA
AIDAprima 2015 460
Newbuild 2016 460
Costa
Costa Diadema (a) 2014 531
P&O Cruises (UK)
Britannia (a) 2015 563
EAA Cruise Brands 2,014
$ 3,489
(a) Euro-denominated.
F-14