Royal Caribbean And Norwegian Cruise Line Shares Are Sliding: What's Going On?
Royal Caribbean Cruises Ltd (NYSE:RCL) and Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) shares are trading lower in Tuesday's after-hours session, in sympathy with shares of Carnival Corp (NYSE:CCL), which are sinking after the company announced an offering.
What Happened: Carnival announced a private offering of $1 billion of convertible senior notes due 2027. The company said it plans to use the offering as part of its 2024 refinancing plans.
Carnival said it plans to grant the initial purchasers an option to purchase up to an additional $150 million of convertible notes. The company expects to use the net proceeds of the offering to make principal payments on debt and for general corporate purposes.
Carnival is the largest global cruise company. Royal Caribbean is the world's second-largest cruise company and Norwegian sits in the third spot.
RCL, NCLH Price Action: Royal Caribbean shares were down 1.93% in after hours at $59.51, while Norwegian was down 3.11% at $17.73 at time of publication, according to Benzinga Pro.
Photo: Ed Judkins from Pixabay.