Royal Caribbean Cruises is reportedly chasing millions of dollars in additional debt to keep its company afloat amid the brutal Covid-19 storm.
The New York-listed owner of 62 ships is in talks with Morgan Stanley to offer $600m in additional bonds, Bloomberg has reported through anonymous sources.
The sources also said that the Miami-based company may also sell convertible bonds and equity, but no structure has been set, according to Bloomberg.
Calls to Royal Caribbean and Morgan Stanley were not immediately returned.
Richard Fain-led Royal Caribbean Cruises in March took out a $2.7bn in credit to boost liquidity to $3.6bn through other credit mechanisms, cash deposits and financing.
The company has also laid off 1,300 US-based workers as part of a broader effort to boost liquidity by $7bn through 2021.
Royal Caribbean is not alone in its coronavirus-driven financing push.
Arnold Donald-led Carnival Corp in early April offered $500m in equity, $420m of which was taken up by Saudi Arabia's Public Investment Fund for an 8.2% stake in the company.
Two weeks earlier, Carnival took out $3bn in credit against a 2019 facility agreement.
Frank Del Rio-led Norwegian Cruise Line Holdings in early March took out $675m in credit against one of its ships, bringing its total credit line to $1.55bn.
Norwegian has reportedly hired Goldman Sachs to explore a private interest in public equity stake sale with several private equity firms.
Neither the owner of 27 ships or Goldman Sachs returned calls seeking comment.
The cruise majors, known collectively as "The Big Three, have their 193 vessels combined in lay-up through at least mid-May.
The US Centers for Disease Control has banned all cruiseships from US territories through late July.
Shares for the three behemoths have made modest gains at the start of Thursday's trading on Wall Street, but they have all lost as much as 70% in value since the beginning of 2020.
Royal Caribbean's shares have ticked up 2.4% to $34.82, while Carnival's stock has gone up 1.9% to $11.86. Norwegian shares have risen 2.5% to $11.14.
