The Public Investment Fund, Saudi Arabia’s sovereign wealth
fund, has acquired an 8.2% stake in Carnival Corp.
According to Carnival Corp.’s securities filing on Monday, Saudi
Arabia acquired 43.51 million Carnival shares. Carnival’s closing stock price
of $8.49 last Friday makes the transaction worth about $370 million.
With the news, Carnival Corp.’s share price increased 22% on
Monday afternoon. The company’s stock has fallen about 80% since mid-January.
Like other cruise companies, Carnival Corp. has paused its
operations since mid-March due to the Covid-19 pandemic. Cruising has been
suspended through the middle of May.
Carnival Corp. last week shored up its liquidity, securing about $500
million from a stock sale and about $5.75 billion on the bond market.
Carnival Corp. borrowed at a high cost. The company is
paying 11.5% interest on $4 billion in three-year senior secured notes and
5.75% interest on $1.75 billion in three-year senior convertible notes.