Cruise line stocks sank Tuesday after Royal Caribbean Group (RCL) said that it plans to raise additional capital to shore up its liquidity throughout the ongoing coronavirus pandemic that has crippled the industry since March. The capital raising entails $500 million in senior convertible notes and a $500 million share offering with a greenshoe option for both, putting downward pressure on the stock by diluting shareholders.
- Royal Caribbean plans to raise $1 billion through debt and equity to shore up liquidity throughout the ongoing pandemic.
- Royal Caribbean shares broke down on heavy volume below an uptrend line stretching back to the March selloff low.
- Carnival Corporation & Plc (CCL) shares broke below a rising wedge pattern on decent volume, indicating downside continuation in the short to medium term.
Although a no-sail order by the Centers for Disease Control and Prevention (CDC) expires on Oct. 31, the cruise industry’s