After-Hours Alert: Why Carnival Shares Are Sinking

Carnival Corp CCL shares are trading lower in Wednesday's after-hours session after the company announced a $1 billion common stock offering.

Carnival said it will offer $1 billion of company shares and intends to grant underwriters a 30-day option to buy up to $150 million of additional shares. The cruise line company expects to use the proceeds for general corporate purposes, which "could include addressing 2023 debt maturities."

Several cruise companies traded higher on Tuesday after the U.S. Center for Disease Control recently put an end to its COVID-19 program for cruise ships, which included mandatory testing and quarantine requirements. 

Carnival is one of the world's largest leisure travel companies with a portfolio of nine cruise lines.

CCL Price Action: Carnival has a 52-week high of $27.39 and a 52-week low of $8.10.

The stock was down 8.03% in after hours at $10.20 at press time, according to data from Benzinga Pro.

Photo: courtesy of Carnival.