Cruise Line Stocks Sail Lower

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.

Key Takeaways

  • 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

Read More

BUZZ-U.S. STOCKS ON THE MOVE-AMC, Royal Caribbean Cruises, Concho Resources, Theratechnologies

Eikon search string for individual stock moves: STXBZ

The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi

The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh

Futures tracking the S&P 500 were flat on Wednesday on doubts about more fiscal stimulus following an impasse in Washington and ahead of the next batch of quarterly bank earnings after JPMorgan kicked off the season on an upbeat note. .N

At 7:15 ET, Dow e-minis 1YMc1 were down 0.07% at 28,566. S&P 500 e-minis ESc1 were down 0.18% at 3,498.5, while Nasdaq 100 e-minis NQc1 were down 0.05% at 12,088. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Genesis Healthcare Inc <GEN>, up 32.3% ** Capital Senior Living Corp <CSU>, up 13.8% ** Monmouth Real Estate Investment Corp <MNR>, up 10.3% The top three NYSE percentage losers premarket .PRPL.NQ: ** Enzo Biochem Inc <ENZ>, down 10.7% ** J Jill Inc <JILL.K>, down 9.8% ** Sos Limited

Read More

Royal Caribbean Group announces pricing of $500 million senior convertible notes offering

MIAMI, Oct. 13, 2020 /PRNewswire/ — Royal Caribbean Group (NYSE: RCL) (the “Company”) today announced that it has priced its previously announced private offering of $500 million aggregate principal amount of 2.875% Convertible Senior Notes due 2023 (the “Convertible Notes”). In connection with the offering of the Convertible Notes, the Company granted certain of the initial purchasers of the Convertible Notes a 13-day option to purchase up to an additional $75 million aggregate principal amount of the Convertible Notes. The offering is expected to close on October 16, 2020, subject to customary closing conditions. The Company expects to use a portion of the net proceeds from the offering to repay its 2.650% Senior Notes due 2020, with the remainder to be used for general corporate purposes.

The Convertible Notes will mature on November 15, 2023, unless earlier converted, redeemed pursuant to a tax redemption or repurchased. The initial conversion rate

Read More

Royal Caribbean Group announces pricing of offering of 8,333,333 shares of common stock

MIAMI, Oct. 13, 2020 /PRNewswire/ — Royal Caribbean Group (NYSE: RCL) (the “Company”) today announced that it has priced its previously announced underwritten public offering of 8,333,333 shares of common stock of the Company at a price of $60.00 per share. The offering is expected to close on October 16, 2020, subject to customary closing conditions. The Company has granted the underwriters an option to purchase up to 1,250,000 of additional shares, which must be exercised on or before November 12, 2020. The Company expects to use the net proceeds from the offering for general corporate purposes.

The Company also announced by separate press release that it has priced its previously announced private offering to eligible purchasers of $500 million aggregate principal amount of 2.875% senior convertible notes due 2023 (or up to $575 million aggregate principal amount if the initial purchasers exercise in full their option to purchase additional

Read More

It’s too early to be speculating in the cruise stocks

CNBC’s Jim Cramer advised investors Tuesday to hold off on buying shares of cruise line operators, citing the continued uncertainty during the coronavirus pandemic.

“It’s still too soon to speculate in the cruise stocks. Their domestic ships won’t start sailing again until December at the earliest, and I think there’s a good chance that gets postponed again,” the “Mad Money” host said.

“If you really want cruise exposure, I say be patient, because days like today make me think you’ll get better buying opportunities,” added Cramer, following a Tuesday trading session in which the three major operators all saw their stocks get hammered.

Driving the sell-off was news that Royal Caribbean was raising fresh capital, Cramer said. The company announced it was issuing $500 million worth of stock in a secondary offering and $500 million in senior convertible notes.

Royal Caribbean’s stock in turn fell 13.2% during Tuesday’s session, closing

Read More

Royal Caribbean, AMC fall; Ethan Allen, Walt Disney rise

Stocks that moved heavily or traded substantially Tuesday: Royal Caribbean, AMC fall; Ethan Allen, Walt Disney rise

NEW YORK — Stocks that moved heavily or traded substantially Tuesday:

The Walt Disney Co., up $3.99 to $128.96.

The owner of ABC, ESPN and Pixar is reorganizing its media and entertainment assets into three divisions.

Williams-Sonoma Inc., up $6.06 to $105.76.

The home furnishings and kitchen gadget retailer raised its quarterly dividend by 10%.

Ethan Allen Interiors Inc., up $2.06 to $17.69.

The home furnishings company gave investors a surprisingly good fiscal first-quarter financial update.

BlackRock Inc., up $24.07 to $638.96.

The investment firm beat Wall Street’s fiscal third-quarter profit forecasts.

Americold Realty Trust, down 59 cents to $38.54.

The owner of refrigeration warehouses is buying Agro Merchants Group for $1.74 billion.

Royal Caribbean Group, down $9.22 to $60.61.

Read More

Cruise stocks lead S&P 500’s losers after Royal Caribbean’s $1 billion in stock, debt offerings


Getty Images

Shares of cruise companies took a beating Tuesday, with Royal Caribbean Group hit the hardest after announcing a total of $1 billion worth of public stock and private convertible debt offerings, and providing a bookings update.

Royal Caribbean’s stock
RCL
dove 13.2% in afternoon trading, to pace all of the S&P 500 index’s
SPX
decliners. The stock is on track for the biggest one-day decline since it tumbled 14.3% on June 11.

Trading volume jumped to 14.8 million shares, or more than double the full-day average of about 6.2 million shares, according to FactSet.

The stock’s selloff also weighed on Royal Caribbean’s peers, as shares of Norwegian Cruise Line Holdings Ltd.
NCLH
dropped 7.3% to be the second-biggest S&P 500 loser, and Carnival Corp.
CCL
slid 7.2% to be the third-biggest decliner.

Royal Caribbean said before the open that it had commenced a public offering of $500 million

Read More

Why Royal Caribbean, Carnival, and Norwegian Cruise Line Stocks Plunged Today

What happened

Shares of Royal Caribbean (NYSE:RCL) sank on Tuesday after the cruise ship company said it was seeking to raise another $1 billion to fund its operations during the coronavirus pandemic. Fellow cruise ship operators Carnival (NYSE:CCL) (NYSE:CUK) and Norwegian Cruise Line Holdings (NASDAQ:NCLH) also fell on the news.

As of 10:40 a.m. EDT, Royal Caribbean, Carnival, and Norwegian Cruise Line Holdings were down 10%, 6%, and 6%, respectively.

So what

With most of its fleet unable to leave port due to COVID-related sailing restrictions, Royal Caribbean has suffered heavy losses during the coronavirus crisis. In just the first six months of 2020, it generated a net loss of $3.1 billion. 

Unfortunately, those losses are set to grow even larger in the coming months. Royal Caribbean said that while it hopes to resume voyages by Dec. 1, it could “provide no assurance” that it will be able to restart

Read More

Cruise stocks lead S&P 500’s losers after Royal Caribbean’s $1 billion in stock, debt offerings


Getty Images

Shares of cruise companies took a beating Tuesday, with Royal Caribbean Group hit the hardest after announcing a total of $1 billion worth of public stock and private convertible debt offerings, and providing a bookings update.

Loading...

Load Error

Royal Caribbean’s stock (RCL) dove 11.1% in midday trading, to pace all of the S&P 500 index’s (SPX) decliners. The stock is on track for the biggest one-day decline since it tumbled 11.3% on June 24.

Trading volume jumped to 9.8 million shares, already more than the full-day average of about 6.2 million shares, according to FactSet.

The stock’s selloff also weighed on Royal Caribbean’s peers, as shares of Norwegian Cruise Line Holdings Ltd. (NCLH) dropped 7.4% to be the second-biggest S&P 500 loser, and Carnival Corp. (CCL) slid 6.9% to be the third-biggest decliner.

Royal Caribbean said before the open that it had commenced a public offering of

Read More

Cruise Ship Stocks Sink as Royal Caribbean Plans to Raise Capital

Text size

A Celebrity Infinity Cruise ship, owned by Royal Caribbean Group, in Miami.


Joe Raedle/Getty Images


Royal Caribbean Group

unveiled plans Tuesday to raise $1 billion in new capital, the latest effort by a cruise operator to shore up liquidity as business remains sharply curtailed by the pandemic.

Royal Caribbean (ticker: RCL) said it has launched a private offering of $500 million in senior convertible notes due 2023, with a purchaser option to buy an additional $75 million of the convertible notes. It has also launched a public offering of $500 million shares of common stock, with an underwriter option to buy $75 million in additional shares.

Shares of all three major U.S. cruise operators were lower after the news. Royal Caribbean was down 10.9%, at $62.19, in recent trading, while rival

Carnival

(CCL) was off 6.5%, at $14.22, and

Norwegian Cruise Line Holdings

(NCLH) was down 6.9%, at

Read More