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Carnival’s Ecstasy cruise ship, docked at Jacksonville harbor, amid a coronavirus outbreak in late March.
Sam Greenwood / Getty Images
U.S. Two of the three major cruise operators have announced capital increases this week, the latest in a series of similar moves in recent months as they have been hit hard by a massive epidemic since March.
Carnival
(Ticker: CCL), the largest cruise company, plans to use the રની 1 billion stockpile it announced on Tuesday for its growing debt burden. It will exchange some debts for equity.
Norwegian Cruise Line Holdings
(NCLH), the smallest of the largest cruise companies in the U.S., said in a release on Tuesday that its offer includes million 20 million at ભાવ 20.80 million, or about મિ 30 million. A company spokesman said Wednesday morning that it plans to use it for “general corporate purposes.” Norwegian monthly cash burn averaged 150 million in the third quarter.
The stock is mixed in early trading on Wednesday as the S&P 500 is flatish. Shares of Carnival rose slightly earlier to 18.10 after a previous decline. Norwegian stocks were down about 6% at .7 20.73.
The carnival transaction, announced on Tuesday, is expected to close by the end of the week, at current prices around $ .0. 57 million shares are valued at 18.05.
Carnival said in a release that its convertible senior debt with a conver.75 %% coupon is worth the offer to “limited number of holders”.
The company’s debt burden has risen during the epidemic, which has shut down most of its operations to rescue some cruises in the Mediterranean.
As of August 31, at the end of the company’s third quarter, its long-term debt totaled 18 18.9 billion, up from 7 9.7 billion at the end of the previous fiscal year on November 18, 2019. The company said in its filing that its average monthly cash burning in the third quarter was $ 770 million, and it expects it to reach 30 530 million a month in the current quarter.
However, the additional shares will help to pay off some debt, they will add to the stock calculation and dilute the existing shareholders.
It remains to be seen when Carnival and his colleagues, including
Royal Caribbean Group
(RCL), will launch boats outside US ports.
Oct. On On1, the Centers for Disease Control and Prevention issued a conditional travel order, banning cruise travel from mid-March.
This includes simulated testing of “the ability of cruise ship operators to reduce COVID-19 on cruise ships,” according to the agency.
Write to Lawrence C. Strauss at [email protected]
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