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Carnival Corporation seeks to raise US$6bn for Covid-19 battle

Carnival Corporation seeks to raise US$6bn for Covid-19 battle

Carnival Corporation has sought to raise as much as US$6 billion in new liquidity as the company battles the collapse in global travel following the coronavirus pandemic.

The operator of P&O Cruises, Cunard, Princess Cruises and Holland America, as well as the eponymous line, said it would launch a share offering to raise $3 billion and issue $1.75 billion in senior convertible notes.

Carnival has also commenced a public offering of $1.25 billion of shares of common stock, while underwriters are also being given an option to purchase up to $187.5 million of additional shares.

Shares in Carnival Corporation have fallen by around 75 per cent since mid-February, and are currently trading at US$13 each.

The corporation said it would use the net proceeds from the offering for “general corporate purposes”.


Many Carnival lines have currently suspended sailings, with both Cunard and P&O Cruises yesterday pushing back a potential return to market until mid-May.

The company drew down $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.”

These include an outbreak of the virus on Diamond Princess while under quarantine in Japan which led to the death of several passengers.

Others on Grand Princess subsequently died due to the disease.

Numerous passengers and crew on other ships, including Zaandam, Costa Luminosa, Ruby Princess, Costa Magica and Costa Favolosa, have been diagnosed with Covid-19.

Carnival added it currently has about 6,000 passengers at sea who are not expected to disembark until the end of April.


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