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.
|NCLH||NORWEGIAN CRUISE LINE HOLDINGS LTD.||13.99||-0.25||-1.76%|
|RCL||ROYAL CARIBBEAN CRUISES||52.10||+1.00||+1.96%|
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.
Norwegian last month extended the suspension of its voyages through September. Other cruises, including Canada and New England sailings, were suspended through October.