Carnival PLC Update on Debt Funding and Other Matters
March 16 2020 - 9:15AM
UK Regulatory
TIDMCCL
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, EUR1.0 billion and GBP150 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
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