Equities

Reuters exclusively reports Norwegian Cruise Line has enough cash for 18 months of no revenue; market reacts

Reuters exclusively reports Norwegian Cruise Line has enough cash for 18 months of no revenue; market reacts

Norwegian Cruise Line’s $3.5 billion in cash on hand will be enough to bankroll the company for “at least 18 months” without any new revenue due to the coronavirus pandemic that has halted voyages, Chief Executive Frank Del Rio told Reuters on Thursday, adding, “That’s enough to cover our cash burn under a zero-revenue environment for at least 18 months, not 12, 18 months.” The comments come a day after Norwegian completed a $2.4 billion fundraising through debt and equity offerings, giving the idled cruise operator needed funds to survive extended voyage suspensions due to the pandemic. Norwegian’s shares were up around 7% amid the broader market rally, but surged as high as 12% after the Reuters report was published.