Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) and Royal Caribbean Cruises Ltd (NYSE:RCL) shares are trading higher by 6.68% to $14.06 and 5.52% to $47.60, respectively, during Tuesday’s session amid strength in cruise stocks. Cruise stocks are also higher in sympathy with Carnival Corp (NYSE:CCL) after the company earlier announced a private offering of $1.25 billion aggregate principal amount of Senior Priority Notes due 2028.
What Happened?
In connection with the offering of the Senior Priority Notes, Carnival and its subsidiaries will contribute 12 unencumbered vessels to the Issuer, with each of these vessels continuing to be operated under one of the company’s, Carnival plc’s or one of their subsidiaries’ brands.
Carnival expects to use the net proceeds of the offering to make principal payments on debt and for general corporate purposes.
Carnival may also use all or a portion of the net proceeds to temporarily repay amounts outstanding under the company’s revolver.
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