Norwegian Leads Cruise Stocks Lower After Pricing Share Offering


(Bloomberg) -- Norwegian Cruise Line Holdings Ltd. fell as much as 17%, leading cruise stocks lower Friday after offering new shares at a steep discount to retire exchangeable debt.

Norwegian tumbled as low as $27.27 in New York after the company said it would issue 47.6 million new shares, priced at $30 each. Carnival Corp., the industry leader, lost 12% while Royal Caribbean Cruises Ltd. retreated 10%. Norwegian was also the biggest daily loser in the S&P 500 index.

The sale is significantly larger, as percentage of existing shares, than recent fundraisings by Royal Caribbean and Carnival. Royal Caribbean on March 3 completed an offering of almost 17 million shares at $91 each. Carnival, the biggest cruise company, priced 40.5 million shares at $25.10 in February.

Cruise operations remain on pause during the Covid-19 pandemic, and the companies have been taking advantage of a recent run-up in their shares to raise money.

The cruise industry essentially went on hold in mid-March 2020 after a series of Covid-19 outbreaks and deaths on ships, and companies have raised billions of dollars in debt and equity to maintain their fleets and meet other expenses while shut down. The companies are still waiting for a green light from the Centers for Disease Control and Prevention to sail again from U.S. waters.

Norwegian shares had risen almost fivefold from their pandemic-driven low last March, as the industry became a key proxy bet on the return to a pre-pandemic "normal."

For more articles like this, please visit us at

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.


More Related News Plans Hong Kong Listing Price at HK$268 Each Plans Hong Kong Listing Price at HK$268 Each

(Bloomberg) -- Online travel platform Group Ltd. has raised about HK$8.5 billion ($1.1 billion) in its Hong Kong second listing after pricing the...

China Warns 34 Tech Firms to Curb Excess in Antitrust Review
China Warns 34 Tech Firms to Curb Excess in Antitrust Review

(Bloomberg) -- China ordered 34 internet corporations Tuesday to rectify their anti-competitive practices within the next month, signaling that Beijing's...

Deserted Streets, Fleeing Workers Threaten Indian Oil Demand
Deserted Streets, Fleeing Workers Threaten Indian Oil Demand

(Bloomberg) -- The usually teeming streets of India's commercial capital of Mumbai looked more like a scene from a post-apocalyptic movie last weekend, an...

China's Trade Surges as Global Economy Recovers from Pandemic

(Bloomberg) -- China's trade jumped in March, a sign that the global recovery from the Covid-19 pandemic is well on track as vaccine rollouts around the...

Mubadala Says It
Mubadala Says It's Close to IPO of Emirates Global Aluminium

(Bloomberg) -- Abu Dhabi sovereign wealth fund Mubadala Investment Co. said it's "close" to an initial public offering of Emirates Global Aluminium PJSC as...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Economy