Carnival PLC - Update on Debt Funding and Other Matters
UPDATE ON DEBT FUNDING AND OTHER MATTERS
() – plc (NYSE/LSE: CCL; NYSE: CUK) announce that its joint current report on Form 8-K was filed with the on disclosing the following matters.
As previously disclosed, in , , and certain of their subsidiaries (collectively, the “Corporation”) became party to an amended and restated five-year (with two one-year extension options) , €1.0 billion and £150 million multi-currency revolving credit agreement (the “Facility Agreement”) with a syndicate of financial institutions (the “Lenders”).
On , provided notice to the Lenders to borrow approximately under the Facility Agreement for a period of six months. As of this borrowing, 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.
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 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 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 . A copy of the joint current report on Form 8-K is also available on the plc website at or .http://www.morningstar.co.uk/uk/NSMwwww.carnivalcorp.comwww.carnivalplc.com
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