1st Jul 2020 11:48
(Alliance News) - Carnival PLC on Wednesday said it has entered into a loan agreement with a series of banks worth over USD2.50 billion.
The agreement will see the cruise ship operator borrow funds in one tranche of USD1.86 billion, another trance of EUR800 million. The loan matures in five years.
The outstanding amounts on the US dollar tranche will incur an annual interest equal to adjusted LIBOR, with a 1.00% floor, plus a margin which is equal to 7.5%.
The euro-denominated tranche will incur interest equal to EURBOR, with a 0% floor, plus a margin equal to 7.5%.
The loan pact contain covenants which limit Carnival from incurring "additional indebtedness or issue certain preferred shares". It also has measures which prevent it from making "dividend payments on or make other distributions in respect of their capital stock".
Carnival shares were 4.2% lower at 944.20 pence each in London on Wednesday.
By Eric Cunha; [email protected]
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