Carnival draws $3 billion under revolver amid virus uncertainty

By Sarah Lizee

Olympia, Wash., March 16 – Carnival Corp., Carnival plc and some of their subsidiaries borrowed about $3 billion under their amended and restated five-year $1.7 billion, €1 billion and £150 million multi-currency revolving credit agreement on Friday, according to an 8-K filing with the Securities and Exchange Commission.

As before, the facilities carry two one-year extension options.

The $3 billion borrowing is available for six months.

Carnival has now fully drawn down the facility agreement.

The corporation said it 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.

Carnival has implemented a temporary pause of its global fleet cruise operations across all brands due to the outbreak.

The company said it believes the ongoing effects of Covid-19 on its global bookings and operations will have a material negative impact on its financial results and liquidity.

Carnival said it is taking additional actions to improve its liquidity, including capital expenditure and operating expense reductions, and pursuing additional financing.

Carnival is a cruise operator based in Miami.

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