thanks math prof. sometimes a range is indicated. i'd be surprised if it isn't at a meaningful discount to current sp. with recent low of $9, might just sneak into the $10 -$11 range. but I expect it'll go lower from there.
Cruise operator Carnival said on Tuesday that it is suspending its dividend payments and the repurchase of its common stock as it looks to weather the coronavirus pandemic, and warned it expects to make a full-year loss.
The company will also cut back on capital expenditure and operating expenses and pursue additional financing.
"Based on these actions and assumptions regarding the impact of Covid-19, we have concluded that we will be able to generate sufficient liquidity to satisfy our obligations and remain in compliance with our existing debt covenants for the next twelve months prior to giving effect to any additional financing, which may occur," it said.
Carnival said the ongoing effects of the outbreak on its operations and global bookings have had, and will continue to have, "a material negative impact" on its financial results and liquidity. This may continue well beyond the containment of the outbreak, it added.
"We have never previously experienced a complete cessation of our cruising operations, and as a consequence, our ability to be predictive regarding the impact of such a cessation on our brands and future prospects is uncertain," it said, adding that the scale and duration of the pandemic is uncertain.
While it cannot estimate the impact on its business "with reasonable certainty", Carnival expects a net loss on both a US GAAP and adjusted basis for the fiscal year ending 30 November 2020.
Carnival also noted that it has received and will likely continue to receive lawsuits from passengers aboard the Grand Princess voyage in February 2020. It may also receive additional lawsuits stemming from Covid-19.
"We cannot predict the quantum or outcome of any such proceedings and the impact that they will have on our financial results, but any such impact may be material," the company said.
Also on Tuesday, the beleaguered cruise operator said it has begun an underwritten public offering of $1.25bn of shares of common stock. It intends to grant the underwriters an option to purchase up to $187.5m of additional shares and will use the net proceeds from the offering for general corporate purposes.
Carnival has also begun private offerings of $3bn shares of senior secured notes due in 2023 and $1.75 billion in senior convertible notes, also due in 2023.
that's a scary corporate update.
so I guess I was right att. they're offering between 1.75 and 2 billion in convertibles and 1.25 to 1.5 billion in new equity, total between 3- 3.5 billion. I don't see a strike price for the convertibles or the equity - has anybody seen it. Looks like they are rushing this out because they know there is further to drop.
yes matt, by my reckoning that's potentially more half the $7 billion raised by equity and convertibles - three and a half total. Three and a half billion raised this way would be dilution up to 50% on current market cap.
mattwales, you need better glasses
Taken directly from the most recent RNS, I quote -
"As of March 15, 2020, cumulative advanced bookings for the remainder of 2020, are meaningfully lower than the prior year at prices that are considerably lower than the prior year on a comparable basis"
Cruise industry is stuffed in the near term. It is widely reported that CCL are seeking to raise seven billion dollars with the majority new equity of convertible bonds. Big dilution coming. Broker target slashed from $ 55 to $ 6.
This has sub 450p written all over it.
A great mid to long term investment once we reach the bottom. But not there yet.
Take your time BB. The only silver lining is the crash that has happened in the last few weeks - and that will continue for several more - will mean our 5.5p will go much further than it would've. Fraser is still a turd and I hope karma comes knocking soon to sort him out.
Bhargav - IAG = BA and Iberia 9/11 time. Check out BA share price post 9/11. Not pretty. My feeling is that when quarterly reports start coming out there'll be another mark down across most sectors in the market. The first quarter will be ugly for most cos and the slowdown only took hold in March. The projections for second quarter will be close to zero income for IAG and the forward looking statements wont be pretty either.
BA/UK is suffering but that's nothing compared to Iberia/Spain, which is just about to take the unenviable position as number 1 on the corona virus cases/deaths league table. IAG is in trouble and today's RNS is spin. They're happy to say how much cash they have access to, but they don't tell you how long that will last do they? Doesn't matter how much you have if it's burning up fast.
Not aiming for anything, just expressing an opinion, which is what these boards are for. As for luddite, being in the high risk group and stuck indoors for 12 weeks is starting to tell, getting a little crotchety. Hey ho.
I wonder how long it'll take to burn through their reserves? Took a long time for airline industry to come back after 9/11. Once free movement returns watch for a second and third wave of infections. People wont be flying or cruising as much for the next year, maybe longer. Who wants to be stuck in a tin can breathing in the recirculated air sat next to god knows who from who knows where. russian roulette.
luddite you reckon you'll still be around next time this hits six quid?
that buy back at 214p was a bit hasty. Easy Jet grounded their entire fleet today. Airlines bleeding cash and going nowhere and government still not making any moves to support the industry. 100p ill be tested. what was the 9/11 low 60p?