Carnival Cruises opts not to rely on COVID-19 relief package
Following the news that Carnival Corporation is securing finances of at least $6 billion to combat the effects of the coronavirus (COVID-19), travel industry experts offered the following analysis of the company’s decision:
Panic has swept over the industry in the last week as speculation emerged that businesses wouldn’t qualify for aid under the US Government’s stimulus package. If this materializes it will be vital for companies to raise funding themselves to ensure they survive this turbulent period.
By taking a proactive approach to the crisis, Carnival can reassure investors and greatly increase their chances of surviving the months to come.
The world’s biggest cruise business is making a share offering to raise $3 billion and issuing $1.75 billion in senior convertible notes. The company has also begun an underwritten public offering of $1.25 billion in shares of common stock.
Carnival Corporation is not the first cruise business to begin securing finances as Royal Caribbean agreed $2.2 billion loan facility with banks to shore up cash flows, last week.