Private Equity is Reportedly Circling Norwegian Cruise Lines
One of the hardest hit industries by the COVID-19 outbreak is the cruise industry, which has undergone a "triple-whammy," so to speak.
First, it's one of the most affected industries on a fundamental level, as no cruises can sail as long as the pandemic is a significant threat. Second, all of the cruise lines were heavily indebted prior to the outbreak, in order to fuel growth and capital returns. And third, the cruise lines aren't domiciled in the U.S. and don't pay U.S. corporate taxes, and therefore were left out of a potential bailout under the CARES Act stimulus package.
That left the cruise companies needing to tap other sources of capital in order to get them through the no-sail period, however long that lasts. Cruises are under a 100-day no-sail period as of March 14. That means no cruising until July, unless the Department of Health and Human Services deems COVID-19 not to be a public health emergency prior to then.
Source Fool.com
