Why Carnival, Norwegian Cruise Line And Royal Caribbean Group Shares Are Falling Sharply During Wednesday's Session - Norwegian Cruise Line (NYSE:NCLH), Royal Caribbean Gr (NYSE:RCL), Carnival (NYSE:CCL)

Carnival Corp CCL, Norwegian Cruise Line Holdings Ltd NCLH and Royal Caribbean Cruises Ltd RCL shares are all trading lower going into the close of Wednesday’s session. Shares of companies in the hotel, restaurant & leisure space are trading lower amid overall market weakness as Treasury yields rise. Additionally, ongoing economic concerns continue to weigh on consumer spending.

What Happened With Cruise Line Stocks Tuesday?

Cruise stocks were otherwise higher Tuesday in sympathy with Carnival after the company earlier Tuesday announced a private offering of $1.25 billion aggregate principal amount of Senior Priority Notes due 2028.

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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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According to data from Benzinga Pro

  • Carnival is trading lower by 5.13% to $7.68
  • Norwegian is trading lower by 2.30% to $14.00
  • Royal Caribbean is trading lower by 3.61% to $46.86

 



Image and article originally from www.benzinga.com. Read the original article here.