01 Apr 2020
Posted in Coronavirus
Carnival’s decision to not rely on coronavirus relief package is a sensible one
Following the news that Carnival Corporation is securing finances of at least $6bn to combat the effects of the coronavirus (COVID-19);
Ben Cordwell, Travel & Tourism Analyst at GlobalData, a leading data and analytics company, offers his view on the situation:
“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 $3bn and issuing $1.75bn in senior convertible notes. The company has also begun an underwritten public offering of $1.25bn in shares of common stock.
“Carnival Corporation is not the first cruise business to begin securing finances as Royal Caribbean agreed $2.2bn loan facility with banks to shore up cash flows, last week.”