Carnival Corporation is issuing USD 6 billion (~EUR 5,49 B) in stock and debt as the cruise shipowner company tries to shore up its finances following the fleetwide suspension of passenger shipping operations due to Coronavirus (COVID-19).
The company announced it plans to issue US$1.25 billion in stock, US$3 billion in secured notes and US$1.75 billion in convertible notes all due 2023. Its stock dropped by ~15% in premarket trading following the announcement but recovered after the markets opened and were up 9% at midday.
The global virus pandemic has roiled the travel industry, particularly major cruise companies. Since the outbreak started in China (late-December 2019), there have been a number of major outbreaks, ship quarantines and deaths on Carnival-owned vessels. This resulted in “negative publicity which could have a long term impact on the appeal of our brands, which would diminish demand for vacations on our vessels".
Carnival’s stock cratered by ~75% since January 1 to ~US$14 per share. The company also announced it is suspending dividend payments to shareholders.
Earlier this month, CLIA (Cruise Lines International Association) announced a 30-day suspension of North American cruise shipping due to the pandemic. On Monday, March 29, Carnival said it was extending the suspension into May for all its brands.
For Coronavirus updates on cruise ship quarantines (infected passengers and crew) and top-pandemic countries (COVID-19 cases and deaths, daily updated statistics) see at CruiseMapper's Norovirus page.