Royal Caribbean Takes an Expensive Step to Survive
Royal Caribbean (NYSE: RCL) has become the last of the big three cruise lines to take a major step in raising new cash in order to survive the coronavirus pandemic. The company had already drawn down its credit lines, laid off staff, and delayed capital expenses. Now it has made plans to sell $3.32 billion in senior secured notes at steep interest rates.
"These are unprecedented times for all of us. Travel restrictions and stay-at-home orders are important to slowing the spread of the virus, but they have severely impacted our operations," said CEO Richard D. Fain in a press release. "We are taking decisive actions to prioritize the safety of our guests and crew while protecting our fleet and bolstering liquidity."
The cruise line finished April with "liquidity of approximately $2.3 billion all in the form of cash and cash equivalents." It added $150 million to its credit facility on May 4 and drew that down.
Source Fool.com
