Carnival seeks $6 billion as Covid-19 pandemic devastates cruise industry

Carnival seeks $6 billion as Covid-19 pandemic devastates cruise industry
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Hong Kong (CNN Business) — Carnival Corporation is seeking at least $6 billion to weather an unprecedented crisis that has decimated business, after coronavirus outbreaks aboard its cruise ships killed several passengers and sickened hundreds more.

The cruise operator announced on Tuesday that it intends to raise $3 billion of secured notes and $1.75 billion of convertible notes — both due in three years — as well as $1.25 billion of new shares.

Wedbush analyst James Hardiman said in a note on Tuesday that Carnival is suffering “a monthly cash burn of approximately $500 million” and the fresh injection of cash should keep the company afloat for the next 12 to 13 months.

Shares in Carnival (CCL) fell 2% in after-hours trading. The stock is down 74% for the year.

Source: CNN

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