Norwegian Cruise Line seeks $1.175B to navigate coronavirus

The Miami-based cruise operator's market value has plunged 68% this year

Norwegian Cruise Line Holdings Ltd. plans to raise $1.175 billion as it fights for survival amid the COVID-19 pandemic.

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The news sent shares lower, and rivals Carnival Corp. and Royal Caribbean Group fell in sympathy.

TickerSecurityLastChangeChange %
NCLHNORWEGIAN CRUISE LINE HOLDINGS LTD.15.64+0.51+3.37%
CCLCARNIVAL CORP.15.82+0.38+2.46%
RCLROYAL CARIBBEAN CRUISES58.67+1.36+2.37%

The Miami-based cruise operator, which has seen its market capitalization plunge by 68 percent to $3.9 billion this year as COVID-19 forced the cancellation of voyages, will sell $250 million of common stock and $925 million of notes in a mixed offering.

Norwegian will use the money to repay its $675 million credit facility and cover any fees associated with the transaction. The remaining proceeds will be used for general expenses.

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Norwegian last month extended the suspension of its voyages through September. Other cruises, including Canada and New England sailings, were suspended through October.