LONDON (ShareCast) - (Sharecast News) - Carnival said its Holland America line would sell four ships to reduce its fleet as the world's biggest cruise company arranged to pay more than 10% a year to borrow almost $1.3bn (£1bn).
The FTSE 250 company said the Maasdam and Veendam would be transferred to an undisclosed buyer in August and the Amsterdam and Rotterdam would move to another company later in 2020. It is selling the ships to cut costs and prepare for reduced demand caused by the Covid-19 crisis.

Carnival emphasised the heritage of the ships, which all joined the fleet in 2000 or before and were the inheritors of long-standing names. The Rotterdam was the sixth Holland America vessel to bear that name.

"It's always difficult to see any ship leave the fleet, especially those that have a long and storied history with our company," said Stein Kruse, chief executive of Holland America Group and Carnival UK. "However, Holland America Line has a bright future ahead."

Carnival also said it would pay 10.5% a year on $775m of secured second-priority secured due in 2026 and 10.125% on €425m ($484m) of notes on the same terms. The private placement notes will be secured on the company's ships and other assets such as inventory, computer software and casino equipment.

The company has borrowed more than $10bn at a high cost and is shedding ships as it burns through $650m a month with its fleet unable to sail. Carnival said on 7 July it expected to dispose of 13 vessels, or 9% of its fleet, in the next few months to adjust to reduced demand for its cruises during the Covid-19 pandemic.

Carnival shares, down more than 70% in 2020, fell 0.2% to £10.55 at 10:25 BST.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE