Norwegian Cruise Line Holdings Ltd. would look at potential capital raises “on an opportunistic basis,” Chief Financial Officer Mark Kempa said on a conference call Tuesday. He added there was a “solid runway” of cash and wasn’t in a rush. Kempa said the potential moves could include raising money in the equity market.
American Airlines also priced an offering of about $500 million in common stock at $13 per share, people familiar with the matter said. The company will use proceeds to enhance its liquidity position, it said in a statement. Theater chain AMC Entertainment Holdings Inc., struggling to stay afloat, filed to offer up to 20 million shares late on Tuesday.
In signs that some companies affected by the pandemic may find more willing investors now, credit derivatives traders also pared back default bets on some Covid-affected companies over the last couple of days, according to data from ICE Data Services, including American, Carnival, and Avis Budget Group Inc.
Companies are also rushing to sell convertible bonds -- securities that can be exchanged for equity if the stock reaches a certain price level. Square Inc., Redfin Corp. and Novocure Ltd. all recently issued such notes.
“There is a light at the end of the tunnel, so convertibles are coming from classic issuers -- tech and health-care companies,” said Santosh Sreenivasan, JPMorgan Chase & Co.’s head of equity-linked capital markets. The motivation there is “why not take the money while you can with terms so attractive,” he said.
--With assistance from Paula Seligson and Crystal Kim.
This article was provided by Bloomberg News.