Debt

3 Months Ended

Mar. 31, 2023

Note 6. Debt

Debt consists of the following (in thousands):


	Interest Rate (1)	Maturities Through	As of March 31, 2023		As of December 31, 2022
Fixed rate debt:
Unsecured senior notes	3.70% to 11.63%	2026 - 2030	$	7,898,504	$	7,199,331
Secured senior notes	8.25% to 11.50%	2025 - 2029	2,373,981		2,370,855
Unsecured term loans	1.28% to 5.89%	2027 - 2034	4,439,699		4,561,129
Convertible notes	2.88% to 6.00%	2023 - 2025	1,725,000		1,725,000
Total fixed rate debt			16,437,184		15,856,315
Variable rate debt:
Unsecured revolving credit facilities (2)	6.20% to 6.95%	2024 - 2025	371,971		2,744,105
USD unsecured term loan	5.71% to 9.69%	2023 - 2037	4,198,261		4,335,973
Euro unsecured term loan	6.46% to 7.09%	2023 - 2028	544,488		534,589
Total variable rate debt			5,114,720		7,614,667
Finance lease liabilities			336,892		351,332
Total debt (3)			21,888,796		23,822,314
Less: unamortized debt issuance costs			(428,685)		(431,123)
Total debt, net of unamortized debt issuance costs			21,460,111		23,391,191
Less—current portion			(2,055,307)		(2,087,711)
Long-term portion			$	19,404,804	$	21,303,480

(1) Interest rates based on outstanding loans as of March 31, 2023, and for variable rate debt include either LIBOR, EURIBOR or Term SOFR plus the applicable margin.

(2) Advances under our $1.9 billion facility accrue interest at Term SOFR plus an interest rate margin ranging from 1.40% to 2.15%. Advances under our $1.1 billion facility accrue interest at Term SOFR plus an interest rate margin ranging from 1.80% to 2.15%. Based on applicable Term SOFR rates, as of March 31, 2023, the interest rates under the $1.9 billion facility and the $1.1 billion facility were 6.20% and 6.95%, respectively. We also pay a facility fee for each facility ranging from 0.20% to 0.30% of the total commitments under such facility.

(3) At March 31, 2023 and December 31, 2022, the weighted average interest rate for total debt was 6.35% and 6.23%, respectively.

Unsecured revolving credit facilities

In January 2023, we amended and extended the majority of our two unsecured revolving credit facilities. The amendment extended the maturities of $2.3 billion of the $3.0 billion aggregate revolving credit capacity by one year to April 2025, with the remainder maturing in April 2024. Additionally, during the quarter ended March 31, 2023 we repaid $2.4 billion under our revolving credit facilities, resulting in an aggregate borrowing capacity of $2.6 billion under our unsecured revolving credit facilities as of March 31, 2023.

Our revolving credit facilities were partially utilized through a combination of amounts drawn and letters of credit issued under the facilities as of March 31, 2023.

Debt financing transactions

In February 2023, we issued $700 million aggregate principal amount of 7.25% senior guaranteed notes due January 2030 ("7.25% Priority Guaranteed Notes"). Upon closing, we terminated our commitment for the $700 million 364-day term loan facility. In addition, the remaining $350 million backstop committed financing was also terminated upon closing, which resulted in an immaterial loss on extinguishment of debt.

Export credit agency guarantees

Except for the term loans we incurred to acquire Celebrity Flora and Silver Moon, all of our unsecured ship financing term loans are guaranteed by the export credit agency in the respective country in which the ship is constructed. For the majority of the loans as of March 31, 2023, we pay to the applicable export credit agency, depending on the financing agreement, an upfront fee of 2.35% to 5.48% of the maximum loan amount in consideration for these guarantees. We amortize the fees that are paid upfront over the life of the loan. We classify these fees within Amortization of debt issuance costs, discounts and premiums in our consolidated statements of cash flows. Prior to the loan being drawn, we present these fees within Other assets in our consolidated balance sheets. Once the loan is drawn, such fees are classified as a discount to the related loan, or contra-liability account, within Current portion of long-term debt or long-term debt.

Debt covenants

Our export credit facilities and our non-export credit facilities have an outstanding principal amount of approximately $9.4 billion as of March 31, 2023. These facilities, as well as certain of our credit card processing agreements, contain covenants that require us, among other things, to maintain a fixed charge coverage ratio, limit our net debt-to-capital ratio, maintain minimum liquidity, and under certain facilities, to maintain a minimum stockholders' equity. As of March 31, 2023, we were in compliance with our debt covenants and we estimate we will be in compliance for the next twelve months.

The following is a schedule of annual maturities on our total debt, including finance leases, as of March 31, 2023 for each of the next five years (in thousands):


Year	As of March 31, 2023 (1)
Remainder of 2023	$	1,806,425
2024	2,295,347
2025	3,671,929
2026	2,753,605
2027	3,494,845
Thereafter	7,866,645
	$	21,888,796

(1) Debt denominated in other currencies is calculated based on the applicable exchange rate at March 31, 2023.