Carnival Corp hopes to raise billions in new finance to offset unprecedented losses tied to the coronavirus pandemic.
In total, the cruise giant aims to raise an extra $9bn, which is roughly equal to its current market capitalisation.
The New York-listed company on Tuesday announced a public offering of $1.25bn in common shares that gives underwriters the chance to buy $188m more in stock.
The line has also launched a private offering of $3.0bn of first-priority senior secured notes due 2023 and $1.75bn of senior convertible notes due 2023.
Carnival may instead put forth $2.01bn total in notes if initial buyers exercise their option to purchase more convertible notes.
BofA Securities, Goldman Sachs & Co and JP Morgan are acting as joint book-running managers for the offering.
Carnival, which is led by chief executive Arnold Donald, did not immediately return calls seeking comment.
Two weeks ago, Miami-based Carnival procured $3bn in credit financing to stave off growing fiscal pains caused by the coronavirus crisis, which is wreaking havoc throughout the entire once-booming industry.
This brings Carnival's total attempted procurement of debt and equity relief to $9bn — a number that equals the company's market capitalisation as of Tuesday.
Carnival's shares edged up 2.8% Tuesday to close at $13.15 amid the announced pursuit of $6bn.
"The fact they could do that is encouraging to investors," Infinity Research analyst Assia Georgieva told TradeWinds.
Cruise lines chasing credit
Carnival is not the only cruise major seeking financing to get itself through the unprecedented downturn in the sector caused by the coronavirus.
Royal Caribbean Cruises and Norwegian Cruise Line Holdings have also secured billions in credit.
Including the financing already secured, the extra money sought by the "Big Three" cruise lines during recent weeks totals about $12.5bn.
Richard Fain-led Royal Caribbean two weeks ago entered into a $2.2bn, 364-day secured term loan facility to boost its liquidity amid uncertainty caused by Covid-19.
This credit, backed by JP Morgan, Bank of America, BNP Paribas and Goldman Sachs, brings the New York-listed owner's liquidity to $3.6bn through other credit mechanisms, cash deposits and financing.
Royal Caribbean took out $550m in credit initially on 10 March.
Three weeks ago, Frank Del Rio-led Norwegian Cruise Line Holdings secured $675m in credit against its 4,200-berth Norwegian Epic (built 2010) for the same reason, bringing its credit limit to $1.55bn.
