Debt

3 Months Ended

Mar. 31, 2025

Note 6. Debt

Debt consists of the following (in millions):


	Weighted Average Rate (1)	Maturities Through	As of March 31, 2025		As of December 31, 2024
Fixed rate debt:
Unsecured senior notes	5.59%	2026 - 2033	$	9,699	$	9,699

Unsecured term loans	3.26%	2027 - 2036	7,577		7,687
Convertible notes	6.00%	2025	110		322
Total fixed rate debt			17,386		17,708
Variable rate debt:
Unsecured revolving credit facilities (2)	—%	2026 - 2028	—		340
USD unsecured term loan	5.89%	2026 - 2037	2,175		2,227
Euro unsecured term loan	3.97%	2028	221		212
Total variable rate debt			2,396		2,779
Finance lease liabilities			116		117
Total debt (3)			19,898		20,604
Less: unamortized debt issuance costs			(509)		(528)
Total debt, net of unamortized debt issuance costs			19,389		20,076
Less—current portion			(1,396)		(1,603)
Long-term portion			$	17,993	$	18,473

(1) Weighted average interest rates are based on outstanding loan balance as of March 31, 2025, and for variable rate debt include either EURIBOR or Term SOFR plus the applicable margin.

(2) Advances under our unsecured revolving credit facilities accrue interest at Term SOFR plus a 0.10% credit adjustment spread plus an interest rate margin of 1.10%. Based on applicable Term SOFR rates, as of March 31, 2025, the interest rate under the unsecured credit facilities was 5.52%. We also pay a facility fee of 0.15% of the total commitments under such facility.

(3) At March 31, 2025 and December 31, 2024, the weighted average interest rate for total debt was 4.99% and 5.03%, respectively.

Unsecured revolving credit facilities

As of March 31, 2025 our aggregate revolving credit capacity is $4.1 billion of which $2 billion of the commitments are scheduled to mature in October 2026 and $2 billion of the commitments are scheduled to mature in October 2028. As of March 31, 2025, our unsecured revolving credit facilities were undrawn.

Convertible Notes due 2025

In March 2025, we completed a privately negotiated exchange with a limited number of holders of the 6.00% Convertible Senior Notes due 2025. The holders exchanged approximately $213 million in aggregate principal amount for approximately 3 million shares of common stock and $214 million in cash, including accrued interest. The convertible notes exchange resulted in an induced conversion expense of $10 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the quarter ended March 31, 2025.

Export credit facilities and agency guarantees

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, 2025, 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 revolving credit facilities, the majority of our term loans, and 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, and to maintain minimum liquidity. As of March 31, 2025, we were in compliance with our debt covenants and we estimate we will be in compliance for the next twelve months.

Annual maturities

The following is a schedule of annual maturities on our total debt, including finance leases, as of March 31, 2025 for each of the next five years (in millions):


Year	As of March 31, 2025 (1)
Remainder of 2025	$	1,208
2026	2,932
2027	2,592
2028	3,077
2029	1,001
Thereafter	9,088
	$	19,898

(1) Debt denominated in other currencies is calculated based on the applicable exchange rate at March 31, 2025.