v3.24.3
Debt
 9 Months Ended
Aug. 31, 2024
Debt Disclosure [Abstract]  
Debt Debt
August 31,November 30,
(in millions)MaturityRate (a) (b)20242023
Secured Subsidiary Guaranteed
Notes
NotesJun 20277.9%$192 $192 
Notes (c)Aug 20279.9%— 623 
NotesAug 20284.0%2,406 2,406 
NotesAug 20297.0%500 500 
Loans
EUR floating rate (c)Jun 2025
EURIBOR + 3.8%
— 851 
Floating rateAug 2027 - Oct 2028
SOFR + 2.8% (d)
2,449 3,567 
          Total Secured Subsidiary Guaranteed5,547 8,138 
Senior Priority Subsidiary Guaranteed
NotesMay 202810.4%2,030 2,030 
Unsecured Subsidiary Guaranteed
Notes
Convertible NotesOct 20245.8%426 426 
NotesMar 20267.6%1,351 1,351 
EUR Notes (c)Mar 20267.6%— 550 
Notes (c)Mar 20275.8%2,722 3,100 
Convertible NotesDec 20275.8%1,131 1,131 
NotesMay 20296.0%2,000 2,000 
EUR NotesJan 20305.8%554 — 
NotesJun 203010.5%1,000 1,000 
Loans
EUR floating rate (e) (f)Apr 2025 - Mar 2026
EURIBOR + 2.4 - 3.3%
545 678 
Export Credit Facilities
Floating rateDec 2031
SOFR + 1.2% (g)
514 583 
Fixed rateAug 2027 - Dec 2032
2.4 - 3.4%
2,484 2,756 
EUR floating rateMar 2025 - Nov 2034
EURIBOR + 0.2 - 0.8%
2,818 3,086 
EUR fixed rateFeb 2031 - Sep 2037
1.1 - 4.0%
5,658 3,652 
          Total Unsecured Subsidiary Guaranteed21,203 20,312 
Unsecured Notes (No Subsidiary Guarantee)
NotesJan 20286.7%200 200 
EUR NotesOct 20291.0%665 659 
          Total Unsecured Notes (No Subsidiary Guarantee)865 859 
Total Debt29,644 31,339 
Less: unamortized debt issuance costs and discounts(788)(768)
Total Debt, net of unamortized debt issuance costs and discounts28,856 30,572 
Less: current portion of long-term debt(2,214)(2,089)
Long-Term Debt$26,642 $28,483 
(a)The reference rates, together with any applicable credit adjustment spread, for substantially all of our variable debt have 0.0% to 0.75% floors.
(b)The above debt table excludes the impact of any outstanding derivative contracts.
(c)See “Debt Prepayments” below.
(d)As part of the repricing of our senior secured term loans, we amended the loans’ margin from 3.0% – 3.4% (inclusive of credit adjustment spread) to 2.8%. See “Repricing of senior secured term loans” below.
(e)The maturity of the principal amount of $216 million was extended from April 2024 to April 2025.
(f)Subsequent to August 31, 2024, we prepaid $323 million of the outstanding principal amount of our euro floating rate loan originally scheduled to mature in 2026.
(g)Includes applicable credit adjustment spread.

Carnival Corporation and/or Carnival plc is the primary obligor of all our outstanding debt excluding the following:
•$3.0 billion under an undrawn $1.9 billion, €0.9 billion and £0.1 billion multi-currency revolving facility (“Revolving Facility”) of Carnival Holdings (Bermuda) II Limited (“Carnival Holdings II”), a subsidiary of Carnival Corporation
•$2.0 billion of senior priority notes (the “2028 Senior Priority Notes”), issued by Carnival Holdings (Bermuda) Limited (“Carnival Holdings”), a subsidiary of Carnival Corporation
•$0.3 billion under a term loan facility of Costa Crociere S.p.A. (“Costa”), a subsidiary of Carnival plc
•$0.9 billion under an export credit facility of Sun Princess Limited, a subsidiary of Carnival Corporation
•$0.1 billion under an export credit facility of Sun Princess II Limited, a subsidiary of Carnival Corporation

All of our outstanding debt is issued or guaranteed by substantially the same entities with the exception of the following:
•Up to $250 million of the Costa term loan facility, which is guaranteed by certain subsidiaries of Carnival plc and Costa that do not guarantee our other outstanding debt
•Our 2028 Senior Priority Notes, issued by Carnival Holdings, which does not guarantee our other outstanding debt
•The export credit facilities of Sun Princess Limited and Sun Princess II Limited, which do not guarantee our other outstanding debt
•The Revolving Facility of Carnival Holdings II, which does not guarantee our other outstanding debt

As of August 31, 2024, the scheduled maturities of our debt are as follows:
(in millions)
YearPrincipal Payments
Remainder of 2024 (a)$737 
2025 (a)1,777 
2026 (a)2,815 
20274,931 
20288,762 
Thereafter10,622 
Total$29,644 

(a)Subsequent to August 31, 2024, we prepaid the outstanding principal amount of our euro floating rate loan with $46 million of principal payments originally scheduled in 2024, $185 million in 2025 and $92 million in 2026.

Revolving Facility

As of August 31, 2024, Carnival Holdings II had $3.0 billion available for borrowing under our Revolving Facility. Carnival Holdings II may continue to borrow or otherwise utilize available amounts under the Revolving Facility through August 2027, subject to satisfaction of the conditions in the facility.

Repricing of Senior Secured Term Loans

In April 2024, we entered into amendments with the lender syndicate to reprice $1.7 billion of our first-priority senior secured term loan facility maturing in 2028 and $1.0 billion of our first-priority senior secured term loan facility maturing in 2027, which are included within the total Secured Subsidiary Guaranteed Loans balance in the debt table above.
2030 Senior Unsecured Notes

In April 2024, we issued $535 million aggregate principal amount of 5.8% senior unsecured notes due 2030. We used the net proceeds from the issuance, together with cash on hand, to redeem the outstanding principal amount of the 7.6% senior unsecured notes due 2026.

Debt Prepayments

During the nine months ended August 31, 2024, we made prepayments for the following debt instruments:

•Euro-denominated tranche of our first-priority senior secured term loan facility maturing in 2025
•First-priority senior secured term loan facilities maturing in 2027 and 2028
•9.9% second-priority secured notes due 2027
•7.6% senior unsecured notes due 2026
•5.8% senior unsecured notes due 2027

The aggregate amount of these prepayments was $3.5 billion.

Export Credit Facility Borrowings

During the nine months ended August 31, 2024, we borrowed $2.3 billion under export credit facilities due in semi-annual installments through 2036. As of August 31, 2024, the net book value of the vessels subject to negative pledges was $18.9 billion.

Convertible Notes

On July 1, 2024, our 5.8% convertible senior notes due 2024 (the “2024 Convertible Notes”) became convertible, at the option of its holders, at any time prior to the close of business on September 27, 2024. Pursuant to the terms of the indenture governing the 2024 Convertible Notes, we have irrevocably elected to settle any conversions of the 2024 Convertible Notes during this period in shares of Carnival Corporation common stock. As of September 27, 2024, holders of substantially all of the $426 million of outstanding 2024 Convertible Notes have elected to convert to shares of common stock.

Collateral and Priority Pool

As of August 31, 2024, the net book value of our ships and ship improvements, excluding ships under construction, is $40.0 billion. Our secured debt is secured on a first-priority basis by certain collateral, which includes vessels and certain assets related to those vessels and material intellectual property (combined net book value of approximately $22.8 billion, including $21.2 billion related to vessels and certain assets related to those vessels) as of August 31, 2024 and certain other assets.

As of August 31, 2024, $8.0 billion in net book value of our ships and ship improvements relate to the priority pool vessels included in the priority pool of 12 unencumbered vessels (the “Senior Priority Notes Subject Vessels”) for our 2028 Senior Priority Notes and $2.8 billion in net book value of our ship and ship improvements relate to the priority pool vessels included in the priority pool of three unencumbered vessels (the “Revolving Facility Subject Vessels”) for our Revolving Facility. As of August 31, 2024, there was no change in the identity of the Senior Priority Notes Subject Vessels or the Revolving Facility Subject Vessels.

Covenant Compliance

As of August 31, 2024, our Revolving Facility, unsecured loans and export credit facilities contain certain covenants listed below:

•Maintain minimum interest coverage (adjusted EBITDA to consolidated net interest charges, as defined in the agreements) as follows:
◦For certain of our unsecured loans and our Revolving Facility, at a ratio of not less than 2.0 to 1.0 for each testing date until May 31, 2025, at a ratio of not less than 2.5 to 1.0 for the August 31, 2025 and November
30, 2025 testing dates, and at a ratio of not less than 3.0 to 1.0 for the February 28, 2026 testing date onwards and as applicable through their respective maturity dates.
◦For our export credit facilities, at a ratio of not less than 2.0 to 1.0 for each testing date until May 31, 2025, at a ratio of not less than 2.5 to 1.0 for the August 31, 2025 and November 30, 2025 testing dates, and at a ratio of not less than 3.0 to 1.0 for the February 28, 2026 testing date onwards.
•For certain of our unsecured loans and export credit facilities, maintain minimum issued capital and consolidated reserves (as defined in the agreements) of $5.0 billion.
•Limit our debt to capital (as defined in the agreements) percentage to a percentage not to exceed 65%.
•Maintain minimum liquidity of $1.5 billion.
•Adhere to certain restrictive covenants through August 2027 (subject to such covenants terminating if the Company reaches an investment grade credit rating in accordance with the agreement governing the Revolving Facility).
•Limit the amounts of our secured assets as well as secured and other indebtedness.

At August 31, 2024, we were in compliance with the applicable covenants under our debt agreements. Generally, if an event of default under any debt agreement occurs, then, pursuant to cross-default and/or cross-acceleration clauses therein, substantially all of our outstanding debt and derivative contract payables could become due, and our debt and derivative contracts could be terminated. Any financial covenant amendment may lead to increased costs, increased interest rates, additional restrictive covenants and other available lender protections that would be applicable.