Carnival PLC Update on Debt Funding and Other Matters

 
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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(END) Dow Jones Newswires

March 16, 2020 09:15 ET (13:15 GMT)