Royal Caribbean Cruises Plunges on $900 Million Convertible Note
Aug 1, 2022 By MarketDepth
Royal Caribbean Cruises Ltd. (RCL:NAS) shares are down 10% on the day after the company announced a $900 million convertible note to buy back debt.
The cruise industry has been under pressure since the beginning of the pandemic in early 2020. The current offering from Royal Caribbean has sent Norwegian Cruise Line tumbling as well.
With over $2.2 Billion raised by Royal Caribbean over the pandemic, this latest news is just another negative impact on the cruise stocks. The company needs to raise money as they’re still struggling with the Covid-19 fallout.
“The purpose of the offering is to replace some of the existing near-term maturities of convertible bonds with new longer-term convertible bonds in a manner which is non-dilutive to shareholders as described below.”Naftali Holtz, Chief Financial Officer of Royal Caribbean Group