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Carnival boosts liquidity with $3bn loan, estimates net loss in 2020

Given the uncertainty of the COVID-19 outbreak, Carnival Corp. & plc said it is currently unable to provide an earnings forecast, however a net loss is expected for the fiscal year ending Nov. 30.

The company tapped into an existing revolving credit facility, amended last August, to borrow approximately $3bn for a six-month period.

Financial flexibility amid coronavirus uncertainty

This will increase the company's cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 pandemic. The proceeds will be used for working capital, general corporate or other purposes.

As of this borrowing, Carnival Corp. will have fully drawn down the facility agreement with a syndicate of lenders that was amended and restated in August 2019. That was a $1.7bn, €1bn and £150m multi-currency revolving credit agreement with a five-year term and two one-year extension options.

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