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.
The news sent shares lower, and rivals Carnival Corp. and Royal Caribbean Group fell in sympathy.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NCLH | NORWEGIAN CRUISE LINE HOLDINGS LTD. | 28.35 | +1.46 | +5.43% |
| CCL | CARNIVAL CORP. | 25.99 | +0.56 | +2.20% |
| RCL | ROYAL CARIBBEAN GROUP | 246.41 | +2.35 | +0.96% |
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.