Carnival Corporation Wants To Raise $6 Billion To Battle Coronavirus Crisis

Cruise company Carnival Corporation has sought to raise $6 billion in new liquidity. The company is battling the worldwide collapse of travel due to the coronavirus pandemic. The operator of P&O Cruises, Cunard, Princess Cruises and Holland America, as well as the eponymous line has revealed that it will launch a share offering to raise $3 billion and issue $1.75 billion in senior convertible notes.

Shares in Carnival Corporation have fallen by 75 percent

Carnival has also begun a public offering of $1.25 billion of shares of common stock. Additionally, underwriters have been given an option to purchase up to $187.5 million of additional shares. Since mid-February shares in Carnival Corporation have fallen by around 75 percent. They are currently trading at US$13 each. The net proceeds from the offering will be used for “general corporate purposes”.

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The company has drawn $3 billion in credit earlier this month. Carnival said in its filing to the US Securities & Exchange Commission: “Covid-19 has had, and will continue to have, a materially adverse impact on our financial condition and operations, which impacts our ability to obtain acceptable financing to fund any resulting shortfalls in cash from operations. The spread of novel coronavirus and the recent developments surrounding the global pandemic are having material negative impacts on all aspects of our business.”



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