When everyone was preparing to have a “wild” end of the 2020, Royal Caribbean (NYSE:RCL) was busy selling Company’s common stock.
As reported in their Form 8-K, submitted just a couple of hours before the New Year’s Eve, Royal Caribbean Cruises Ltd. has sold 13,045,927 shares under its “at-the-market” equity offering program (ATM) that was announced on December 3, 2020, and exhausted the program in full.
The Company received aggregate gross proceeds of $1.0 billion from the ATM Offering. The net proceeds from the ATM Offering will be used for general corporate purposes, which means that they will have the next 4 months covered when it comes to cash burn.
According to Cruise Industry RCL is burning, on average, $270 million per month.
“Our cash burn rate for the quarter was consistent with our previously announced range when excluding cash refunds of customer deposits, commissions, debt obligations, cash inflows from new and existing bookings and fees and collateral postings related to our financing and hedging activities,” RCL said, according to Cruise Industry.
RCL is trading at 50% discount compared to pre-corona period, which is $74.69 per share on December 31, 2020.