Norwegian Cruise Line Warns of 'Insignificant' Q2 Revenue
Norwegian Cruise Line Holdings Ltd said on Thursday it expected little revenue in the second quarter, as the COVID-19 pandemic brought global tourism to a standstill and forced the company to suspend all voyages for months.
Shares of the cruise operator, which also forecast a full-year loss, fell about 8% in premarket trading.
Crushed by a wave of cancellations and steep fall in bookings, the company said it plans to raise about $925 million in two new bond offerings to ride out the rest of the year and repay a $675 million credit line.
It also plans on raising another $250 million in a new equity offering.
Rival Carnival Corp said on Wednesday it also plans on raising about $1.26 billion in bond offerings.
Norwegian said it expects to report “insignificant” revenue and cash and cash equivalents of about $2.2 billion for the second quarter ended June 30.
Bookings for 2021 are still within historical averages, Norwegian said, but warned that a global economic downturn could hit demand further.
(Reporting by Uday Sampath; Editing by Shinjini Ganguli)