Tour operator, Carnival, saw its share price drop even lower as the company raised cash to cope with the coronavirus pandemic. Listed on both the NYSE and FTSE 100, Carnival share price is in the red by 7.73% and 20.62%, respectively.
On Wednesday, the world’s largest cruise operating company announced that it raised $6.25 billion through bonds and common shares. According to Carnival, it would use this cash for to cover its financial obligations for the next 12 months. Details were not necessary for investors, however, as the company saw enough demand for its offering. It was even oversubscribed a few times.
Carnival issued bonds worth $4 billion with maturity in 2023 and an interest rate of 11.5%. Along with it were senior convertible notes amounting to $1.75 billion at 5.75% with the same maturity date. The company also announced 62.5 million floating shares at $8 price per share.
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Despite overwhelming demand for its capital raising, Carnival share price continued to trade lower on the FTSE 100 today. In fact, it has been the biggest-loser on FTSE 100 for the second consecutive day in a row.
The stock is trading at its lowest levels since October 2001. If the sell-off continues, we may see the stock fall to its all-time lows at 552.8. On the other hand, if risk aversion eases, Carnival share price could find support around its current price level where it also found support last week. A rally to the high of March 26 at 1,243.0 would effectively form a double bottom chart pattern. This could consequently suggest a potential bullish run to 3,158.2 where Carnival share price topped on February 2020.