(Alliance News) - Carnival PLC on Wednesday said it has amended its multi-currency revolving credit agreement with new covenants and extended the pause in operations in the US and New Zealand.
The FTSE 250-listed cruise operator stated the amendment increases the ratio of debt to capitalization from the testing date on November 30, 2021 to February 28, 2024. It also introduces new financial covenants including a minimum liquidity covenant from February 28, 2021 to November 30, 2022 and a minimum interest coverage covenant from February 28, 2023 for the remainder of the term of the facility agreement. During the remainder of the term of the facility agreement, EURIBOR and LIBOR will have a 0% floor.
Separately, Carnival said it has extended the pause in all US operations and cancelled all departures from US ports until March 31. It added P&O Cruises Australia has also extended the rolling pause in operations in New Zealand until April 25.
"We are sorry to disappoint our guests, as we can see from our booking activity that there is clearly a pent-up demand for cruising on Carnival. We appreciate their patience and support as we continue to work on our plans to resume operations in 2021 with a gradual, phased in approach," said Christine Duffy, president of Carnival Cruise Line.
Shares in Carnival were trading 2.0% higher at 1,313.50 pence each on Wednesday afternoon in London. The stock was down 0.9% at USD20.41 in New York.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Carnival (CCL)