Norwegian Drops on Secondary Offering of 40 Million Shares

Norwegian Cruise Line shares fell after the company launched a secondary offering of 40 million shares at $20.80 each.
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Norwegian Cruise Line  (NCLH) - Get Report shares dropped on Wednesday after the company launched a secondary offering of 40 million shares at $20.80 each.

The shares closed the regular session Tuesday up 3.5% at $22.06. The cruise-line operator unveiled the offering after hours. At last check the stock was off 6.2% at $20.70.

The offering is expected to close this Friday. Norwegian said it would use the funds for general purposes. Barclays and JP Morgan are underwriting the offering. 

The coronavirus pandemic forced U.S. authorities to issue a No Sail order. That order was lifted in November. But earlier this month Norwegian said it was suspending all of its trips through the end of the year at least. 

“The company will continue to work in tandem with global government and public health authorities and its Healthy Sail Panel expert advisors to take all necessary measures to protect its guests, crew and the communities visited,” Norwegian said in a statement.

Last week, Norwegian shares popped after the company said cruise bookings have risen since Pfizer  (PFE) - Get Report said that its coronavirus vaccine candidate was showing a 90% efficacy rate. 

"Bookings, the last 24 hours, yesterday, were pretty good, better than the previous four or five Mondays," Chief Executive Frank Del Rio said on the company's third-quarter-earnings call.

"And that, I think is attributable to the vaccine news. We did not have any particular promotion or did any outsized marketing."

Norwegian reported a third-quarter adjusted loss of $2.35 a share, swinging from a profit of $2.23 a share a year earlier as the company's U.S. operations were halted to help contain the coronavirus pandemic. Revenue in the period fell to $6.5 million from $1.91 billion a year earlier. 

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