MIAMI, March 1,
2023 /PRNewswire/ -- Carnival Corporation & plc
(NYSE/LSE: CCL; NYSE: CUK) (the "Company") today announced that it
has successfully arranged a new forward starting $2.1 billion multi-currency revolving credit
facility (the "New Revolver"). The New Revolver will replace
Carnival Corporation's existing multi-currency revolving credit
facility (the "Existing Revolver") upon its maturity in
August 2024. The New Revolver was
issued by the Carnival Corporation's subsidiary Carnival Holdings
(Bermuda) II Limited (the
"Borrower") and has an initial term of one year, commencing
August 2024, with two, mutual
one-year extension options. The new facility also contains an
accordion feature, allowing for additional commitments up to an
aggregate of $2.9 billion, which is
the amount of the Existing Revolver.
"Our new facility enables us to retain the full benefit of our
$2.9 billion revolver until
August 2024, while building on our
base $2.1 billion commitment over the
next 18 months. The successful transaction is a direct reflection
of our strong bank relationships and confidence in our continuing
return to strong profitability, which we plan to utilize as a
springboard to deleveraging and returning to investment grade,"
said David Bernstein, Chief
Financial Officer.
The New Revolver will be unsecured and guaranteed on an
unsecured basis by Carnival Corporation, Carnival plc and the same
subsidiaries of the Company that guarantee the Existing Revolver.
In connection with entering into the New Revolver, the Company and
its subsidiaries will contribute three unencumbered vessels to the
Borrower, with each of these vessels continuing to be operated
under one of the Company's brands.
The New Revolver was co-coordinated by Bank of America, BNP
Paribas and JP Morgan. PJT Partners served as independent financial
advisor to Carnival Corporation & plc.
About Carnival Corporation & plc
Carnival Corporation & plc is the largest global cruise
company, and among the largest leisure travel companies, with a
portfolio of world-class cruise lines – AIDA Cruises, Carnival
Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O
Cruises (Australia), P&O
Cruises (UK), Princess Cruises, and Seabourn.
Additional information can be found on www.carnivalcorp.com,
www.carnivalsustainability.com, www.aida.com, www.carnival.com,
www.costacruise.com, www.cunard.com, www.hollandamerica.com,
www.pocruises.com.au, www.pocruises.com, www.princess.com, and
www.seabourn.com.
Cautionary Note Concerning Factors That May Affect Future
Results
Some of the statements, estimates or projections contained in
this document are "forward-looking statements" that involve risks,
uncertainties and assumptions with respect to us, including some
statements concerning future results, operations, outlooks, plans,
goals, reputation, cash flows, liquidity and other events which
have not yet occurred. These statements are intended to qualify for
the safe harbors from 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 facts are statements that could be deemed
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, whenever possible, to
identify these statements by using words like "will," "may,"
"could," "should," "would," "believe," "depends," "expect," "goal,"
"aspiration," "anticipate," "forecast," "project," "future,"
"intend," "plan," "estimate," "target," "indicate," "outlook," and
similar expressions of future intent or the negative of such
terms.
Forward-looking statements include those statements that relate
to our outlook and financial position including, but not limited
to, statements regarding:
•
Pricing
|
•
Liquidity and credit ratings
|
•
Booking levels
|
•
Adjusted earnings per share
|
•
Occupancy
|
•
Adjusted EBITDA
|
•
Interest, tax and fuel
expenses
|
•
Adjusted Net Income (Loss)
|
•
Currency exchange rates
|
•
Estimates of ship depreciable lives and
residual
values
|
•
Goodwill, ship and trademark fair
values
|
Because forward-looking statements involve risks and
uncertainties, there are many factors that 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 cautionary statements of the known factors
that we consider could materially affect the accuracy of our
forward-looking statements and adversely affect our business,
results of operations and financial position. Additionally, many of
these risks and uncertainties are currently, and in the future may
continue to be, amplified by our substantial debt balance as a
result of the pause of our guest cruise operations. There may be
additional risks that we consider immaterial or which are unknown.
These factors include, but are not limited to, the
following:
- Events and conditions around the world, including war and
other military actions, such as the invasion of Ukraine, inflation, higher fuel prices, higher
interest rates and other general concerns impacting the ability or
desire of people to travel have led, and may in the future lead, to
a decline in demand for cruises, impacting our operating costs and
profitability.
- Pandemics have in the past and may in the future have a
significant negative impact on our financial condition and
operations.
- Incidents concerning our ships, guests or the cruise
industry have in the past and may, in the future, negatively impact
the satisfaction of our guests and crew and lead to reputational
damage.
- Changes in and non-compliance with laws and regulations
under which we operate, such as those relating to health,
environment, safety and security, data privacy and protection,
anti-corruption, economic sanctions, trade protection, labor and
employment, and tax have in the past and may, in the future, lead
to litigation, enforcement actions, fines, penalties and
reputational damage.
- Factors associated with climate change, including evolving
and increasing regulations, increasing global concern about climate
change and the shift in climate conscious consumerism and
stakeholder scrutiny, and increasing frequency and/or severity of
adverse weather conditions could adversely affect our
business.
- Inability to meet or achieve our sustainability related
goals, aspirations, initiatives, and our public statements and
disclosures regarding them, may expose us to risks that may
adversely impact our business.
- Breaches in data security and lapses in data privacy as well
as disruptions and other damages to our principal offices,
information technology operations and system networks and failure
to keep pace with developments in technology may adversely impact
our business operations, the satisfaction of our guests and crew
and may lead to reputational damage.
- The loss of key team members, our inability to recruit or
retain qualified shoreside and shipboard team members and increased
labor costs could have an adverse effect on our business and
results of operations.
- Increases in fuel prices, changes in the types of fuel
consumed and availability of fuel supply may adversely impact our
scheduled itineraries and costs.
- We rely on supply chain vendors who are integral to the
operations of our businesses. These vendors and service providers
are also affected by COVID-19 and may be unable to deliver on their
commitments which could negatively impact our business.
- Fluctuations in foreign currency exchange rates may
adversely impact our financial results.
- Overcapacity and competition in the cruise and land-based
vacation industry may negatively impact our cruise sales, pricing
and destination options.
- Inability to implement our shipbuilding programs and ship
repairs, maintenance and refurbishments may adversely impact our
business operations and the satisfaction of our
guests.
- Failure to successfully implement our business strategy
following our resumption of guest cruise operations would
negatively impact the occupancy levels and pricing of our cruises
and could have a material adverse effect on our business. We
require a significant amount of cash to service our debt and
sustain our operations. Our ability to generate cash depends on
many factors, including those beyond our control, and we may not be
able to generate cash required to service our debt and sustain our
operations.
The ordering of the risk factors set forth above is not intended
to reflect our indication of priority or likelihood.
Forward-looking statements should not be relied upon as a
prediction of actual results. Subject to any continuing obligations
under applicable law or any relevant stock exchange rules, we
expressly disclaim any obligation to disseminate, after the date of
this document, any updates or revisions to any such forward-looking
statements to reflect any change in expectations or events,
conditions or circumstances on which any such statements are
based.
Forward-looking and other statements in this document may also
address our sustainability progress, plans and goals (including
climate change and environmental-related matters). In addition,
historical, current and forward-looking sustainability- and
climate-related statements may be based on standards and tools for
measuring progress that are still developing, internal controls and
processes that continue to evolve, and assumptions and predictions
that are subject to change in the future and may not be generally
shared.
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SOURCE Carnival Corporation & plc