REG-Carnival PLC: Update on Debt Funding and Other Matters

CarnivalAnnouncement

16/03/2020 13:20

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



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