In a bid to stay afloat, Royal Caribbean Cruises put up 28 of its ships as collateral for a $3.3 billion bond offering Wednesday. The cruise operator said it will use most of the proceeds to repay a $2.4 billion loan agreement with Morgan Stanley.
It's not clear which ships it pledged for the offering, but its vessels have a net book value of roughly $23 billion as of December, and its fleet includes the world's largest cruise ship, Symphony of the Seas.
Shares of Royal Caribbean, which have sunk 73% this year, fell further Wednesday morning.
Cruise lines have been hit particularly hard by the pandemic that has choked international travel and the "no sail order" by the U.S. Centers for Disease Control. Royal Caribbean has laid off or furloughed a quarter of its more than 5,000 workers in the U.S.
Earlier this month, rival Norwegian Cruise Line offered two ships and two private islands as collateral for its $2.2 billion debt offering. That gave it funds it needs to survive for at least the next 18 months.