Saudis Cruise to Quick Paper Profit

Riyadh’s Public Investment Fund may have found the perfect time to board ship. The country’s sovereign wealth fund has built an 8% stake in Carnival, the cruise group at the waterborne epicenter of the coronavirus pandemic. The company’s shares, down 83% for the year as of Friday, jumped more than 25% on Monday after it persuaded bond and stock investors to stump up $6.25 billion last week – albeit at a pricey 11.5% coupon for senior secured debt.

Carnival’s bosses reckon they now have enough cash for at least 12 months, despite some $1 billion of monthly outgoings and no clue when their ships will sail again. PIF’s stake, which it bought in the market, according to the Financial Times, was worth $369 million at Friday’s close. By Monday, at least, the bet had paid off, soaring by nearly $100 million in value.

(Reuters)