Carnival Corp (NYSE: CCL) shares dropped following the announcement of a tender offer of the company’s 11.5% senior secured noted expected 2023 subject to refinancing. CCL might have dropped in line with sector-wide plunges as other cruise companies also dropped.
CCL stock tests support level for the fourth time
The stock has been trading in a sideways channel, and for the fourth time, it has tested its support level. CCL is trading above its 200-day average and below its 50-day moving average, implying that it might be in a consolidation period. The stock tested its support level at $25, implying that a plunge is likely if the stock doesn’t correct soon. If it fails to hold the $25 level, the stock could drop to $18.
Carnival Cruise launches The Carnival Vista
The cruise company launched The Carnival Vista ship during the weekend, which is the first since the start of the pandemic from a US port. The ship will sail from Texas’ Port Galveston for a week-long cruise to visit various spots, including Mahogany Bay, Roatan, and Cozumel. Passengers have to confirm their COVID-19 vaccination status and offer proof before boarding.
Carnival Cruise Line indicted that its future cruises booking volumes were 45% higher in Q2 than in Q1. In addition, the company said that 2022 books are already high relative to 2019. The company’s president Christine Duffy said that they are delighted and ready for the first cruise since the pandemic started.
For Q2 2021, the company regretted a net loss of $2 billion, and in Q3 and full-year, it anticipated an adjusted net loss. The monthly cash burn rate was $500 million in 1H 2021. Carnival Cruise raided $26.4 billion and reduced future loan interest through refinancing by $120M per year.