July 16, 2020 / 12:31 PM / 22 days ago

Norwegian Cruise Line warns of 'insignificant' second-quarter revenue

(Reuters) - Norwegian Cruise Line Holdings Ltd (NCLH.N) said on Thursday it expected little revenue in the second quarter, as the COVID-19 pandemic brought global tourism to a standstill and forced the company to suspend all voyages for months.

Shares of the cruise operator, which also forecast a full-year loss, fell about 8% in premarket trading.

Crushed by a wave of cancellations and steep fall in bookings, the company said it plans to raise about $925 million in two new bond offerings to ride out the rest of the year and repay a $675 million credit line.

It also plans on raising another $250 million in a new equity offering.

Rival Carnival Corp (CCL.N) said on Wednesday it also plans on raising about $1.26 billion in bond offerings.

Norwegian said it expects to report “insignificant” revenue and cash and cash equivalents of about $2.2 billion for the second quarter ended June 30.

Bookings for 2021 are still within historical averages, Norwegian said, but warned that a global economic downturn could hit demand further.

Reporting by Uday Sampath in Bengaluru; Editing by Shinjini Ganguli

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