Travel, Tourism & Hospitality

OPINION: Carnival’s decision to not rely on Covid-19 relief package 'is sensible'

Carnival Corporation is in talks to raise $6 billion to combat the impact of the coronavirus (COVID-19) on travel, a report said.
The company, looking to raise cash to improve liquidity as the Covid-19 pandemic upends its business, is being advised by lenders including JPMorgan Chase & Co., said the people, who requested anonymity because the matter is private, Boomberg reported.
Ben Cordwell, Travel & Tourism Analyst at GlobalData, a leading data and analytics company, offers his view on the situation: “Panic has swept over the industry in the last week as speculation emerged that businesses wouldn’t qualify for aid under the US Government’s stimulus package. If this materialises, it will be vital for companies to raise funding themselves to ensure they survive this turbulent period."
“By taking a proactive approach to the crisis, Carnival can reassure investors and greatly increase their chances of surviving the months to come."
“The world’s biggest cruise business is making a share offering to raise $3 billion and issuing $1.75 billion in senior convertible notes. The company has also begun an underwritten public offering of $1.25 billion in shares of common stock," Cordwell said.
“Carnival Corporation is not the first cruise business to begin securing finances as Royal Caribbean agreed $2.2 billion loan facility with banks to shore up cash flows, last week.” - TradeArabia News Service