Jump to content
Cruise Critic Community

Recommended Posts

8 minutes ago, Aintnofun007 said:

if i was anyone to be concerned it would be royals lenders and not so much royal..   what bank wants to be stuck with a few hundred million dollar ship in an industry that is getting killed? pretty sure they could call someones bluff and say ok take it...

 

NCL already put the Epic up for collateral today to borrow cash if/when needed,

https://www.seatrade-cruise.com/news/nclh-secures-additional-675m-liquidity-amid-coronavirus-uncertainty


Which ship do we think RCL will put up?  

Share this post


Link to post
Share on other sites
2 hours ago, dasmonkey said:

 

NCL already put the Epic up for collateral today to borrow cash if/when needed,

https://www.seatrade-cruise.com/news/nclh-secures-additional-675m-liquidity-amid-coronavirus-uncertainty


Which ship do we think RCL will put up?  

 

I guess you drop the Majesty off at a title pawn shop.  24.99% interest. Payments on Fridays. Open Late. 

Share this post


Link to post
Share on other sites
8 hours ago, LMaxwell said:

 

I guess you drop the Majesty off at a title pawn shop.  24.99% interest. Payments on Fridays. Open Late. 

LIBOR + .8% is quite a bit different than 24.99. Right now it would be 1.65%. Sounds a credit worthy entity to get a rate like that. 

mac_tlc

Share this post


Link to post
Share on other sites

Maybe this

https://www.rclinvestor.com/press-releases/release/?id=1462

MIAMI, March 10, 2020 /PRNewswire/ -- Royal Caribbean Cruises Ltd (NYSE: RCL) today announced that due to the spread and recent developments related to the COVID-19 outbreak, the company has increased its revolving credit capacity by $550 million bolstering the company's liquidity.  The company is pursuing additional actions to improve its liquidity by reducing capital expenditures, operating expenses and taking other actions to improve liquidity by at least a further $1.7 billion in 2020.  The company is also planning reductions to the 2021 capital expenditures and operating expenses.

The company had previously communicated that its 2020 guidance did not include the impact of the COVID-19 outbreak.  Given the recent government actions and the heightened impact and uncertainty of changes in the magnitude, duration and geographic reach of COVID-19, the company is withdrawing its first quarter and full-year 2020 guidance.

"These are extraordinary times and we are taking these steps to manage the company prudently and conservatively," said Richard D. Fain, chairman and CEO.  "I am proud of the work our teams are doing to address this unprecedented situation." 

(more on the link)

 

 

Share this post


Link to post
Share on other sites
10 minutes ago, atricks said:

  The company is pursuing additional actions to improve its liquidity by reducing capital expenditures, operating expenses and taking other actions to improve liquidity by at least a further $1.7 billion in 2020.  The company is also planning reductions to the 2021 capital expenditures and operating expenses.

 

 

 

With a reduction of $1.7 billion in capital expenditures, might that mean that planned 'Royal Amplified' refurbishments might be postponed? They obviously can not cut Odyssey and Wonder, so would that not just leave planned refurbishments to cut? 

Share this post


Link to post
Share on other sites
2 minutes ago, MADflyer said:

They obviously can not cut Odyssey and Wonder, so would that not just leave planned refurbishments to cut? 

I think Liberty is the only real Amp left, the other major capital expenditure is all the land developments planned - those could get cut.

Share this post


Link to post
Share on other sites
Just now, Biker19 said:

I think Liberty is the only real Amp left, the other major capital expenditure is all the land developments planned - those could get cut.

They plan to cut 2021 as well. so I guess Liberty and Adventure could be affected by the cuts. It will be interesting to see what operational expenses they can reduce and how that might affect deployment. 

Share this post


Link to post
Share on other sites

https://www.bloomberg.com/news/articles/2020-03-10/royal-caribbean-may-be-cut-to-junk-by-s-p-on-virus-travel-impact

 

"Royal Caribbean may be cut to junk, while Carnival would join the lowest tier of investment grade."

 

"S&P’s action takes Royal Caribbean one step closer to becoming a fallen angel. With two speculative-grade ratings, its $1.5 billion of debt would leave the Bloomberg Barclays investment-grade index. Carnival is rated A3 by Moody’s, equivalent to S&P’s A- rating."

 

I hope RCL is considered too big to fail, I really would like to cruise on the Serenade again.

Share this post


Link to post
Share on other sites

Here’s one opinion of it:https://www.google.com/amp/s/seekingalpha.com/amp/news/3550124-nomura-sees-cruise-line-recovery-in-2021

 

Stock will continue to door poorly as virus information is released. Where it bottoms is anyone’s guess. I am averaging in. Long term this becomes a very profitable company again in my eyes. 

Share this post


Link to post
Share on other sites
1 hour ago, MADflyer said:

They plan to cut 2021 as well. so I guess Liberty and Adventure could be affected by the cuts. It will be interesting to see what operational expenses they can reduce and how that might affect deployment. 

Assuming they don't get shut down in the U.S over next few months, I would guess maybe less crew, less supplies offered aboard (i.e. food & drinks choices), less general maintenance, and possibly adjust itineraries to minimize fuel & operating costs of the ship itself.

Share this post


Link to post
Share on other sites
12 minutes ago, Another_Critic said:

Current discussion here:

 

 

SOOOOOO many threads so little moderation😇

Share this post


Link to post
Share on other sites
14 minutes ago, NavyCruiser said:

As we just turned Diamond, now u tellin' me they're Junk...?

Probably more like Cubic Zirconia.

Share this post


Link to post
Share on other sites
1 hour ago, Forcemark said:

"Royal Caribbean may be cut to junk, while Carnival would join the lowest tier of investment grade."

 

This credit-worthiness downgrade will have material negative impact on the stock price. Numerous mutual funds are not permitted to hold securities below specific investment grade level. The fund managers may believe that RCL presents a lucrative investment opportunity at current price but with the downgrade they will be forced to sell their RCL holdings. This means there will be further negative pressure on the price, and consequently it means that now is not time to buy if all other things remain the same.

Share this post


Link to post
Share on other sites
Posted (edited)
1 hour ago, PatMunits said:

 

This credit-worthiness downgrade will have material negative impact on the stock price. Numerous mutual funds are not permitted to hold securities below specific investment grade level. The fund managers may believe that RCL presents a lucrative investment opportunity at current price but with the downgrade they will be forced to sell their RCL holdings. This means there will be further negative pressure on the price, and consequently it means that now is not time to buy if all other things remain the same.

 

So you're saying for every fund manager constrained by investment grade rating there isn't an offsetting value manager filling his boots right now?

Edited by NateUpNorth

Share this post


Link to post
Share on other sites

Of course the creditors will work w them!  A cruise ship isn’t like a car, house, condo, or even a hotel. A bank just can’t flip a cruise ship. The creditors are going to ride out the storm as well. RCL might be struggling but it isn’t due to mismanagement. They’ll be fine in the long run. 

Share this post


Link to post
Share on other sites

But once they come back, Creditors will make them drop the "Royal" name & be replaced with "Regular Folks" Caribbean....

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Forum Jump
    • Categories
      • Forum Assistance
      • Q&A: Cruise Insurance w/ Steve Dasseos of the TripInsuranceStore.com June 2020
      • New Cruisers
      • Cruise Lines “A – O”
      • Cruise Lines “P – Z”
      • River Cruising
      • ROLL CALLS
      • Digital Photography & Cruise Technology
      • Member Cruise Reviews
      • Special Interest Cruising
      • Cruise Discussion Topics
      • UK Cruising
      • Australia & New Zealand Cruisers
      • North American Homeports
      • Ports of Call
      • Cruise Conversations

Announcements

×
×
  • Create New...