Carnival Cruise Guides To 2020 Loss, Announces Common Stock Offering

Carnival Corp CCL shares were trading lower Tuesday after the company announced debt and stock offerings and said it sees preliminary first-quarter EPS of 22 cents per share.

The cruise line said it expects a net loss on a GAAP and adjusted basis for the fiscal year ending Nov. 30, 2020.

Carnival announced an underwritten public offering of $1.25 billion of shares of common stock, offering underwriters an option to purchase up to $187.5 million of additional shares.

Carnival also announced an offering of senior secured notes and senior convertible notes that will be due in 2023. The private offerings are of a $3-billion aggregate principal amount of first-priority senior secured notes due 2023 and a $1.75-billion aggregate principal amount of senior convertible notes due 2023. 

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Coronavirus Impact On Carnival 

The company acknowledged the impact of COVID-19 has had and said it will continue to have a materially adverse impact on Carnival's financial condition and operations, which impacts its ability to obtain acceptable financing to fund any resulting shortfalls in cash from operations.

“The current, and uncertain future, impact of the COVID-19 outbreak, including its effect on the ability or desire of people to travel (including on cruises), will continue to impact our results, operations, outlooks, plans, goals, growth, reputation, cash flows, liquidity, and stock price.”

Carnival Cruise shares were down 16.02% at $10.75 in Tuesday’s pre-market session.

The stock has a 52-week high of $56.04 and a 52-week low of $7.90.

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