UPDATE ON DEBT
FUNDING AND OTHER MATTERS
MIAMI (March 16, 2020) – Carnival Corporation & plc
(NYSE/LSE: CCL; NYSE: CUK) announce that its joint current report
on Form 8-K was filed with the U.S. Securities and Exchange
Commission on March 16, 2020
disclosing the following matters.
Facility Agreement
As previously disclosed, in August
2019, Carnival Corporation, Carnival plc and certain of
their subsidiaries (collectively, the “Corporation”) became party
to an amended and restated five-year (with two one-year extension
options) $1.7 billion, €1.0 billion
and £150 million multi-currency revolving credit agreement (the
“Facility Agreement”) with a syndicate of financial institutions
(the “Lenders”).
On March 13, 2020, Carnival
Corporation provided notice to the Lenders to borrow approximately
$3 billion under the Facility
Agreement for a period of six months. As of this borrowing,
Carnival Corporation will have fully drawn down the Facility
Agreement. The Corporation borrowed under the Facility
Agreement in order to increase its cash position and preserve
financial flexibility in light of current uncertainty in the global
markets resulting from the COVID-19 outbreak. The proceeds
from the Facility Agreement borrowings will be available to be used
for working capital, general corporate or other purposes.
Other Matters
Due to the spread and recent developments, including growing
port restrictions around the world, related to the COVID-19
outbreak, the Corporation previously announced a voluntary and
temporary pause of its fleet cruise operations by its continental
Europe and North American
brands. Subsequently, the Corporation implemented a temporary
pause of its global fleet cruise operations across all
brands. Each brand has separately announced the duration of
its pause. Significant events affecting travel, including
COVID-19, typically have an impact on booking patterns, with the
full extent of the impact generally determined by the length of
time the event influences travel decisions. The Corporation
believes the ongoing effects of COVID-19 on its operations and
global bookings will have a material negative impact on its
financial results and liquidity. The Corporation is taking
additional actions to improve its liquidity, including capital
expenditure and expense reductions, and pursuing additional
financing. Given the uncertainty of the situation, the
Corporation is currently unable to provide an earnings forecast,
however we expect results of operations for the fiscal year ending
November 30, 2020 to result in a net loss.
A copy of the joint current report on Form 8-K has been
submitted to the National Storage Mechanism and will shortly be
available for inspection at http://www.morningstar.co.uk/uk/NSM. A
copy of the joint current report on Form 8-K is also available on
the Carnival Corporation & plc website at wwww.carnivalcorp.com
or www.carnivalplc.com.
THIS ANNOUNCEMENT
CONTAINS INSIDE INFORMATION