Carnival Corporation & plc announces closing of $ 2.3 billion term loan facility for refinancing, interest savings and maturity extension

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Interest savings of over $ 135 million per year

Posted: October 18, 2021 at 3:05 p.m. CDT|Update: 1 hour ago

MIAMI, October 18, 2021 / PRNewswire / – Carnival Corporation & plc (NYSE / LSE: CCL; NYSE: CUK) today announced that Carnival Corporation (the “Company”) has closed its previously announced additional senior secured term loan facility for a total principal amount of $ 2.3 billion. The proceeds of the Additional New Term Facility are used to redeem all of the Company’s outstanding 11.500% Senior Secured Notes due 2023 (the “Redeemed Notes”) and to pay the accrued interest on such redeemed notes and related fees and commissions. expenses. The refinancing operation will generate annual interest savings of more than $ 135 million and extend deadlines. Borrowings under the new additional term facility will bear interest at an annual rate equal to adjusted LIBOR with a floor of 0.75%, plus a margin equal to 3.25%, and will mature in 2028. The The terms of the additional new term facility are otherwise generally in accordance with the terms of the Company’s existing term loan facility.

JPMorgan Chase Bank, NA acted as the sole global coordinator for the marketing of the additional term facility.

PJT Partners is the independent financial advisor to Carnival Corporation & plc.

About Carnival Corporation & plc

Carnival Corporation & plc is one of the world’s largest leisure travel companies with a portfolio of nine of the world’s largest cruise lines. With operations in North America, Australia, Europe and Asia, its portfolio includes Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises (Australia), Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard.

Caution regarding factors that may affect future results

Carnival Corporation and Carnival plc and their respective subsidiaries are referred to collectively in this press release as “Carnival Corporation & plc”, “our”, “our” and “we”. Some of the statements, estimates or projections contained in this press release are “forward-looking statements” that involve risks, uncertainties and assumptions about us, including certain statements regarding the financing transactions described herein, future results, operations, outlook, plans, goals, reputation, cash flow, liquidity and other events that have not yet occurred. These statements are intended to qualify for the havens of liability provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are statements that could be considered forward-looking. These statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and the beliefs and assumptions of our management. We have tried, where possible, to identify these statements by using words such as “will”, “may”, “could”, “” anticipate “,” foresee “,” project “,” future “,” intend “,” plan “,” estimate “,” target “,” indicate “,” outlook “and similar expressions of future intention or such terms.

Forward-looking statements include statements relating to our prospects and financial condition, including, but not limited to, statements regarding:

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Price

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Goodwill, vessels and fair brand values

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Reservation levels

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Liquidity and credit ratings

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Occupation

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Adjusted earnings per share

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Interest, taxes and fuel charges

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Back to guest cruise operations

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Change rate

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Impact of the global coronavirus COVID-19 pandemic on our financial condition and operating results

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Estimates of depreciation life and residual values ​​of vessels

Because forward-looking statements involve risks and uncertainties, many factors could cause our actual results, performance or achievements to differ materially from those expressed or implied by our forward-looking statements. This note contains important cautions regarding known factors which, in our opinion, could materially affect the accuracy of our forward-looking statements and adversely affect our business, results of operations and financial condition. Additionally, many of these risks and uncertainties are currently magnified by, and will continue to be, or may in the future be magnified by the COVID-19 outbreak. It is not possible to predict or identify all of these risks. There may be additional risks which we consider to be immaterial or which are unknown.

These factors include, but are not limited to, the following:

  • COVID-19 has had, and is expected to continue to have, a significant impact on our financial condition and operations, impacting our ability to obtain acceptable financing to fund the resulting reductions in operating cash flow. The current and uncertain future impact of the COVID-19 outbreak, including its effect on people’s ability or desire to travel (including cruising), is expected to continue to impact our bottom line, operations, outlook, plans, goals, reputation, litigation, cash flow, liquidity and share price;
  • Global events affecting people’s ability or desire to travel have led and may continue to lead to a decline in demand for cruises;
  • Incidents involving our ships, guests or the cruise industry as well as adverse weather conditions and other natural disasters have in the past and may in the future have an impact on the satisfaction of our guests and our crew and damage our reputation;
  • Changes and non-compliance with the laws and regulations under which we operate, such as those relating to health, environment, safety and security, privacy and data protection, anti-corruption, economic sanctions, trade protection and taxation have had in the past and may, in the future, lead to litigation, enforcement actions, fines, penalties and damage to reputation;
  • Data security breaches and breaches in data privacy as well as disruption and other damage to our main offices, IT operations and system networks, including recent ransomware incidents, and the inability to keep pace with technological developments may have a negative impact on our business operations, the satisfaction of our guests and our crew and may damage reputation;
  • The ability to recruit, develop and retain qualified flight attendants who live away from home for extended periods of time can negatively impact our business operations, guest services and satisfaction;
  • Increases in fuel prices, changes in the types of fuel consumed and the availability of fuel supplies may negatively impact our routes and scheduled costs;
  • Fluctuations in exchange rates may have a negative impact on our financial results;
  • Overcapacity and competition in the cruise and land vacation industry can lead to a decline in our cruise sales, fares and destination options;
  • Failure to implement our shipbuilding programs and ship repairs, maintenance and renovations may negatively impact our business operations and customer satisfaction; and
  • The risk factors included in the annual report of Carnival Corporation and Carnival plc on Form 10-K filed with the SEC on January 26, 2021 and Carnival Corporation and Carnival plc quarterly reports on Form 10-Q filed with the SEC on April 7, 2021, June 28, 2021 and September 30, 2021.

The order of the risk factors shown above is not intended to reflect our indication of priority or likelihood.

Forward-looking statements should not be taken as a prediction of actual results. Subject to any continuing obligation under applicable law or any relevant stock market rule, we expressly disclaim any obligation to release, after the date of this document, any update or revision to these forward-looking statements to reflect any changes in expectations or the events, conditions or circumstances on which these statements are based.

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SOURCE Carnival Corporation & plc

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