7.88 -0.05 (-0.63%)
After hours: 7:40PM EDT
|Bid||7.90 x 800|
|Ask||7.91 x 800|
|Day's Range||7.50 - 8.12|
|52 Week Range||7.08 - 55.13|
|Beta (5Y Monthly)||1.39|
|PE Ratio (TTM)||1.84|
|Forward Dividend & Yield||2.00 (26.67%)|
|Ex-Dividend Date||Feb 19, 2020|
|1y Target Est||N/A|
Port Canaveral, the primary sea hub for Central Florida, will furlough 20% of its workforce due to the economic impact of the coronavirus pandemic. The port, which has roughly 250 employees, said 50 workers from its cruise operations and recreation business segments will be affected. “While Port Canaveral is open and operating, the current pandemic situation has had significant impact on our businesses,” said the port in a prepared statement.
Bored and with her 25th anniversary coming up, a friend of my wife decided to see if she could still fit into her wedding dress. Now for something a bit more sobering I learned that is happening in the mortgage markets as I talked with a mortgage broker on Thursday. Meanwhile, things in the cruise industry just got a bit more interesting as Carnival Corp. took bold steps to raise capital.
Against this grim backdrop, however, consider the admirable resilience of two groups: cruise passengers and bond investors, who both think we might soon be floating on the high seas sipping piña coladas. Against stiff competition, Carnival’s shares are among the worst-performing globally this year among companies worth more than $1bn, having fallen 85 per cent. As Carnival acknowledged this week in the “recent developments” section of the bond offering’s prospectus, it has experienced a few problems of late.
(Bloomberg) -- After being stranded at sea for three weeks, passengers on a Carnival Corp. cruise ship that was refused entry by multiple countries started disembarking in Fort Lauderdale, Florida -- but not all will be allowed to end a nightmare trip that left four dead and nine infected with coronavirus.Holland America Line’s Zaandam arrived at the port Thursday as emergency medical personnel waited to carry away the most seriously ill for treatment. The Rotterdam, a sister ship that came to the aid of the Zaandam and took on some of its healthy passengers, was also allowed to disembark.By the evening, some of the 1,200 passengers from the two ships posted on social media that they were making their journeys home. A couple dozen others passengers with milder symptoms, along with hundreds of crew members, must remain on board.Fort Lauderdale was the Zaandam’s final port, and its plight has spurred fierce debate in Florida, with officials weighing help for the sick on board against the possibility of adding to strains on the local health-care resources. It’s just the latest cruise ship to see an outbreak and strife at sea, with the boats’ close living quarters facilitating the spread of virus cases. Countries around the world have been refusing port to cruise liners on concern passengers will pass on the coronavirus once on land. That’s left thousands of cruisers and crew stranded and cruise companies facing one of their biggest ever crises.As part of the negotiations with local officials, Holland America came up with a plan to treat and quarantine passengers with mild symptoms on board the Zaandam, while sending about a dozen of the sickest passengers to Florida hospitals. The news saw joy and relief at coming into port to disappointment for some of those on board, with some couples and families being faced with separation.Zaandam passenger Gloria Weed was initially given the news that both she and her husband, Bill Weed, would be moved to a hospital. Hours later, the Sarasota, Florida couple found out they would be separated: he would be headed to a local hospital, while she must remain on the ship.Coughing Fits“I thought Florida residents might be left off even if they were sick,” said Gloria, who has had a low-grade fever, in a text message to her daughter, Amy Weed-Jones. “I hope it’s just a mistake.”Weed called her daughter in the middle of the night recently and told her she didn’t think her husband, 75, was going to make it until the morning. Bill Weed has been diagnosed with pneumonia and suffers from fever and debilitating coughing fits.“I don’t know how much time my dad has, honestly,” Weed-Jones said, before receiving the news her father would be hospitalized. “Every second counts.”Weed-Jones, along with other relatives of passengers, has been pleading with Florida government officials to allow the Zaandam to dock on humanitarian grounds and because there are Americans on board. But they faced opposition from local officials and the state Governor Ron DeSantis. U.S. President Donald Trump weighed in, pushing for Florida to allow the ships to dock.The Zaandam had departed Buenos Aires and was a day into its voyage when the U.S. State Department advised Americans on March 8 not to embark on cruises. On March 13, Trump said he asked cruise lines to suspend sailings, though some had already announced they were doing so voluntarily.‘Without Warning’Holland America said the Zaandam’s voyage was the victim of an unprecedented crisis that struck “without warning,” in a statement. But parent company Carnival saw its first virus situation two months ago off Yokohama, Japan, when the Diamond Princess was infected with coronavirus and made to enforce a mass quarantine on board. More than 700 people were eventually infected, and for a time it was the largest virus outbreak outside of mainland China.Under Holland America’s plan, most passengers will be allowed to disembark and then put on charter flights home. About 45 guests with mild illness will quarantine on board, and some with urgent medical needs will be taken to hospitals.“These travelers could have been any one of us or our families, unexpectedly caught in the middle of this unprecedented closure of global borders that happened in a matter of days and without warning,” Holland America Line President Orlando Ashford said.When passengers and crew started getting sick on the Zaandam, Holland America sent the Rotterdam to rendezvous off Panama and take on many healthy but vulnerable passengers. One anxious passenger, Yadira Garza, pleaded with Mexican consulate officials to help her and her newlywed husband get off the Zaandam, which she described as the “death ship.”Read more: Passengers on ‘Death Ship’ Plead for Rescue as Virus StrikesAmong the four people who died earlier in the voyage, two had Covid-19, according to Holland America. Since March 22, 107 guests and 143 crew between both ships have shown flu-like symptoms.The Zaandam’s voyage was supposed to end in San Antonio, Chile, on March 21. A second leg of the ship’s voyage was supposed to end in Ft. Lauderdale on April 7. The company said it attempted to dock at other ports but was denied entry.The virus crisis isn’t over for Carnival.One of the ships in its Princess Cruises line, the Coral Princess, is poised to arrive in Fort Lauderdale on Saturday. On Thursday, the company said that seven Coral Princess passengers and five crew had tested positive for Covid-19.Cruise operators have been hit financially by coronavirus, with many shuttering operations until at least mid-May. Some Carnival sailings on its flagship line have been canceled through the end of the year.The suspensions have upended earnings. Carnival is in talks to raise as much as $7 billion to shore up its finances, Bloomberg reported.(Updates with passenger comments from sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Highly rated U.S. corporate bond issuers raised a record $110.502 billion this week, according to Refinitiv IFR data, as fears that the coronavirus pandemic may limit access to capital markets stoked borrowing. A $19 billion bond from T-Mobile to finance its acquisition of rival telecom Sprint on Thursday helped push this week's issuance past the record $109.1 billion set last week. The market for new investment-grade debt has boomed since the Federal Reserve and Treasury Department last week announced monetary and fiscal stimulus to help contain the economic fallout from the pandemic.
A cruise ship that has been floating at sea with coronavirus patients aboard for two weeks after being turned away from South American ports was finally allowed to dock in Florida on Thursday.
The number of cases of the coronavirus that causes COVID-19 topped 1 million on Thursday as U.S. jobless claims soared to record levels, offering a grim look at how the illness is hurting businesses, individuals and the economy.
A Holland America cruise ship with sick passengers and its sister ship will be allowed to dock in Florida, a media report says.
The ships have been on a two-week journey from South America to Fort Lauderdale, with at least four coronavirus-related deaths occurring onboard.
The stock market is climbing after President Donald Trump tweeted that Saudi and Russia could work together to end the pain in the oil markets. That helped investors ignore Thursday’s jobless claims data—more than 6 million Americans filed for unemployment insurance—for now.
The company priced private offerings of $4 billion of senior secured notes with a coupon of 11.5%. It also is raising $1.75 billion in convertible notes at 5.75%. The debt matures in 2023.
Stocks are bouncing back after a brutal start to the second quarter. Benchmark oil prices are up almost 10%, in part on hopes for an end to the Saudi-Russian market-share war.
Australian authorities are refusing to allow almost a dozen foreign cruise ships to dock or repatriate 11,000 crew members in a bitter dispute that trade unions warn risks creating a “humanitarian disaster”. State and federal authorities said on Thursday that bringing crew onshore was too risky because of health concerns after coronavirus was detected on at least three ships. Peter Dutton, Australia’s home affairs minister, alleged on Thursday that some companies had been dishonest about the infection rates on board ships lining up off Australia’s coast.
Lockdowns have curtailed summer holiday bookings and cruise liners now have a grim reputation for becoming quarantine ships. The centrepiece of the financing is a $4bn offering of five-year senior secured bonds priced at just under par with an annual coupon of 11.5 per cent. That juicy implied return attracted enough investors for Carnival to increase the offering from a mooted $3bn. Carnival’s physical assets — its fleet — are valued on its balance sheet at nearly $40bn.
Carnival shares dropped 8% in London as the cruise operator priced the stock offering at $8 a share, vs. a close on Monday of $8.80. Carnival said it is decreasing its common stock offering to approximately $500 million from the previously announced $1.25 billion, while increasing its senior debt offering to $4 billion from the previously announced $3 billion. Carnival also is selling $1.75 billion in convertible notes.
Programming note: There will be no Opening Quote tomorrow, April 3. A trickle of company cash calls is turning into a steady stream. Carnival, the Florida-headquartered but FTSE-listed cruise ship operator is the biggest (more on that below).
Despite having its cruise ships idled to comply with coronavirus travel restrictions, the company was able to attract enough investors that its capital raising was oversubscribed several times over, albeit at a steep price, sources told Reuters. Carnival priced $4 billion in bonds maturing in 2023 - upsized from the $3 billion originally planned - with a yield at par value of 11.5%, it said in a statement. By comparison, Carnival paid a 1% yield in October, when it borrowed 600 million euros ($657.7 million) in the European debt market.
(Bloomberg) -- Cruise ships should be ready to care for passengers and crew with Covid-19 and other flulike symptoms at sea, the U.S. Coast Guard has advised, saying medical evacuations are contributing to strained health-care resources in the Southeast.Foreign-flagged vessels with more than 50 people on board should plan to treat passengers for an “indefinite period of time,” according to a March 29 memo from the Coast Guard Seventh District Area of Responsibility, which includes Georgia, South Carolina, Puerto Rico and Florida, home to the world’s busiest cruise port in Miami.The Coast Guard isn’t saying it will refuse evacuations or not let ships dock. The advisory applies to cruise ships flying foreign flags -- virtually the entire industry. Three Carnival Corp. vessels, including two with sick passengers, are steaming toward Fort Lauderdale and are due to arrive in days.“This is necessary as shore-side medical facilities may reach full capacity and lose the ability to accept and effectively treat critically ill patients,” said the memo, which was signed by Rear Admiral E.C. Jones, commander of the Seventh District.Two Holland America ships owned by Carnival were set to arrive Thursday in Fort Lauderdale, one bearing sick passengers. Executives pleaded with local authorities Tuesday to allow them to dock on humanitarian grounds, saying two people need emergency medical evacuation. Another Carnival-owned ship with sick passengers on board, the Coral Princess, was scheduled to arrive in Fort Lauderdale on Saturday.‘Big Trouble’At a press briefing Wednesday at the White House, President Donald Trump said the passengers included Canadian and British nationals, as well as Americans, and that officials were mobilizing to help, including sending medical teams on board.“We’re taking the Canadians off and giving them to Canadian authorities,” the president said. “The same thing with the U.K. But we have to help the people -- they’re in big trouble.”Vessels requesting so-called medevac for flu-like symptoms should speak with the Joint Rescue Coordination Centers for Miami or San Juan, according to the memo. It said they must explain the circumstances, and there must be confirmed hospital space for evacuation to be considered.Foreign-flagged vessels, including those registered to the Bahamas, should first seek help in the jurisdiction where they’re flagged, according to the Coast Guard.All vessels in U.S. territorial seas have to immediately report sick passengers and crew and deaths, as well as provide daily updates on the ill. If they don’t immediately report illness or death, they could be prosecuted, the memo said.According to a Carnival statement Wednesday, the Holland America ships were expected to arrive at the boundary of U.S. waters early Thursday, but local authorities still haven’t given Holland America the go-ahead to disembark over concern about the impact on public health. According to Holland America, 45 guests currently have “mild illness” and will stay isolated on the ship until recovered, even if the others disembark.The company said “less than 10” people need immediate critical care onshore.(Updates with president’s comments starting in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Following a banner March, April could see another $150 billion to $200 billion of borrowing from investment-grade U.S. companies, including the financing of T-Mobile’s acquisition of Sprint.
(Bloomberg) -- Cruise line operator Carnival Corp. sold a larger-than-expected $4 billion of new secured bonds as part of an effort to raise over $6 billion from debt and stock sales to shore up liquidity amid turmoil caused by the coronavirus pandemic.It increased the three-year bond offering from the $3 billion originally targeted and cut the coupon to 11.5% from about 12.5% earlier, as order books swelled to around $17 billion, according to people familiar with the matter. The debt priced at a discount of 99 cents on the dollar, giving it a yield of just under 12%, said the people, who asked not to be identified discussing a private matter.The financing was the biggest test yet of investor willingness to fund industries ravaged by the Covid-19 outbreak. Carnival has investment-grade ratings, but the bond sale is being managed by junk-bond syndicate desks and is one of the highest coupons ever offered even at the reduced interest rate. The vast majority of orders are from high-yield accounts, and about $2.6 billion came from incoming queries from investors, one of the people said.Investors have piled into new debt from America’s safest companies, but they’ve largely shunned riskier firms, especially those the virus has shuttered. While Carnival’s bonds are secured by a first-priority claim on the company’s assets such as its vessels and intellectual property, investors still can’t be sure when the company will sail again after a series of virus outbreaks at sea. Carnival still has ships at sea bearing sick passengers that are seeking to dock.Read more: Carnival begs for docks for virus-beset ships after weeks at seaThe company’s shares recorded their worst one-day drop on record on Wednesday, dropping by more than 33% to end trading at $8.80, its lowest close since 1993.Among other changes, the company’s share sale was reduced to $500 million from $1.25 billion, according to separate people with knowledge of the situation. It’s also raised $1.75 billion convertible notes to improve its liquidity position. Combined with the $3 billion the company drew on its bank credit lines last month, the bond and stock sales will give the company over $9 billion of additional liquidity.Carnival estimates it has liquidity needs of about $1 billion a month, according to a statement Tuesday. That includes ship and administrative operating costs of $200 million to $300 million. According to the company, it has to pay about $2 million to $3 million a month for a so-called warm ship layup, in which the ships are essentially decommissioned but kept ready to re-enter service relatively quickly. Longer-term ship layups cost about $1 million a month, it said.Carnival had initially approached bond investors on both sides of the Atlantic to sell $3 billion of notes in dollars and euros, but dropped the euro tranche which was marketed with a coupon of about 11.5%. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp. led the dollar bond.Carnival earlier this year hosted one of the most dramatic coronavirus episodes aboard its Princess Cruises-branded Diamond Princess, off Yokohama, Japan. The Diamond Princess had more than 700 Covid-19 cases, the biggest outbreak outside mainland China for a while.The company urged Florida’s Broward County to accept on humanitarian grounds two Holland America Line ships, one bearing sick passengers, as they sailed for Fort Lauderdale with nowhere else to turn, Bloomberg reported Tuesday.(Updates bond pricing details, share sale size and stock performance starting in first paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- A downsized stock sale by Carnival Corp. priced $500 million of shares at $8 each, people familiar with the matter said.The company also priced $1.75 billion of convertible bonds at a 5.75% coupon and 25% conversion premium, one of the people added.The equity and equity-linked asset sales accompany a $4 billion debt offering by the cruise liner.Carnival was originally seeking buyers for $1.25 billion of shares, but reduced the offering to $750 million earlier on Wednesday. It was then reduced a second time to $500 million, the people said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.