RCL Stock

[At Sea At Peace]

8 hours ago, At Sea At Peace said:

 

BB

 

Remember when all of the rage was NCL, through their valiant opposition to FL prohibition to require documentation of vaccination, was for the good health and safety of their passengers, was bloviated by FDR repeatedly as 'the business plan' and such was lauded here? 

 

And that all of that testing of vaccinated passengers and the draconian lockdowns if testing positive on board 'for the good of everyone' was "so good, so good" don't you know?  😉

 

So, that business model, once hailed, is now the polar opposite, and is conveniently now hailed.  🙃 

 

There has been no change in the science. 😷

 

Hmmm.  😲

 

 

 

 

Well...Oh my. 

 

We are all one big happy and healthy population again ('relatively).  🙃

 

"I expect the CDC to scale back Covid restrictions for quarantining"

 

the CDC relaxed its COVID-19 guidelines, "dropping the recommendation that Americans quarantine themselves if they come into close contact with an infected person."  

 

the CDC says that "to limit social and economic impacts, quarantine of exposed persons is no longer recommended, regardless of vaccination status." 

 

"spacing footage"

 

"The Centers for Disease Control and Prevention also said people no longer need to stay at least 6 feet away from others"
 

"school and work protocols"

 

"The CDC recommendations apply to everyone in the U.S., but the changes could be particularly important for schools, which resume classes this month in many parts of the country.

 

Perhaps the biggest education-related change is the end of the recommendation that schools do routine daily testing, although that practice can be reinstated in certain situations during a surge in infections, officials said.

 

The CDC also dropped a “test-to-stay” recommendation, which said students exposed to COVID-19 could regularly test — instead of quarantining at home — to keep attending school. With no quarantine recommendation anymore, the testing option disappeared too."

😇

 

 

 

[Biker19]

MIAMI – August 15, 2022 – Royal Caribbean Group (NYSE: RCL) (the “Company”) today announced that it has commenced a private offering of $1,000,000,000 aggregate principal amount of senior unsecured notes due 2027 (the “Notes”).

 

The Company intends to use the proceeds from the sale of the Notes to repay principal payments on debt maturing in 2022 and/or 2023 (including to pay fees and expenses in connection with such repayments). Pending such uses, the Company may temporarily apply the proceeds to repay borrowings under its revolving credit facilities or other borrowings.

 

Nothing contained herein shall constitute an offer to sell or the solicitation of an offer to buy any security. The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States, only to certain non-U.S. investors pursuant to Regulation S. The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.

 

https://www.sec.gov/Archives/edgar/data/884887/000110465922090700/tm2223435d1_ex99-1.htm

[Biker19]

Royal Caribbean Group priced its private offering of $1.25b of 11.625% senior unsecured notes due 2027.

The offering was upsized from $1b.

 

Use of proceeds

The company intends to use the proceeds to repay principal on debt maturing in 2022 and/or 2023. Pending such uses, Royal Caribbean may temporarily apply the proceeds to repay borrowings under its revolving credit facilities or other borrowings.

 

The notes are being offered only to qualified institutional investors outside the US and are expected to be issued on or around Aug. 18.

 

Royal Caribbean prices upsized $1.25b senior unsecured notes (seatrade-cruise.com)

[DirtyDawg]

51 minutes ago, Biker19 said:

Royal Caribbean Group priced its private offering of $1.25b of 11.625% senior unsecured notes due 2027.

The offering was upsized from $1b.

 

Use of proceeds

The company intends to use the proceeds to repay principal on debt maturing in 2022 and/or 2023. Pending such uses, Royal Caribbean may temporarily apply the proceeds to repay borrowings under its revolving credit facilities or other borrowings.

 

The notes are being offered only to qualified institutional investors outside the US and are expected to be issued on or around Aug. 18.

 

Royal Caribbean prices upsized $1.25b senior unsecured notes (seatrade-cruise.com)

The good news that yield is only about 8.7% over 5 year treasuries. Today they call these high yield bonds. They used to call these Junk bonds which would be apropos for a cruise line bond these days. 🙂 

Or perhaps we need a new name for this type of bond. 🤔

Scuttle Bonds?

Salvage Bonds?

Wreck bonds?

Rust Bucket Bonds?

 

Edited August 16, 2022 by DirtyDawg

[At Sea At Peace]

Wow that is a high FACE interest.  Guess we'll have to wait and see how they trade.  Yep, this is what is known as junk bonds.  However, if you believe in equity (stock), some of their junk debt is providing quite a return.  No for me; either.

[Baron Barracuda]

So they're issuing $1.25B five year 11 5/8% notes to refund near term debt including the remainder of the 2 7/8% and 4 1/4% converts due next year.  They'll argue eliminating converts is anti-dilutive but that high coupon will likely increase annual interest expense almost $100MM.

[Biker19]

From their SEC filing today:

 

On September 19, 2022, we amended our unsecured term loan agreement with Bank of America, N.A., as administrative agent (the “BofA Term Loan”) to, among other things, extend the maturity date of advances held by consenting lenders by twelve months to October 2024. Consenting lenders received a prepayment equal to 10% of their respective outstanding advances. Following this amendment, the aggregate outstanding principal balance of advances under the BofA Term Loan is $501.6 million, with $30.0 million maturing in October 2023 and $471.6 million maturing in October 2024.

[BermudaBound2014]

Thanks for sharing.

 

Cruise stocks have been green last 10 days in a row.

 

CCL report Q3 by the end of the month. Should create movement for all three.

 

 

[yogimax]

2 hours ago, Biker19 said:

From their SEC filing today:

 

On September 19, 2022, we amended our unsecured term loan agreement with Bank of America, N.A., as administrative agent (the “BofA Term Loan”) to, among other things, extend the maturity date of advances held by consenting lenders by twelve months to October 2024. Consenting lenders received a prepayment equal to 10% of their respective outstanding advances. Following this amendment, the aggregate outstanding principal balance of advances under the BofA Term Loan is $501.6 million, with $30.0 million maturing in October 2023 and $471.6 million maturing in October 2024.

Simply delays the execution by a year.

[BermudaBound2014]

1 minute ago, yogimax said:

Simply delays the execution by a year.

 

Exactly. CCL did the same extension a few months ago. Seems banks would rather collect some interest than go into default at this time. 

[Biker19]

From RCL's SEC filing today:

 

MIAMI – September 22, 2022 – Royal Caribbean Cruises Ltd. (NYSE: RCL) (the “Company”) today announced that it has commenced a private offering of senior guaranteed notes due 2029 (the “Senior Guaranteed Notes”) for an aggregate principal amount of $1.0 billion and a concurrent private offering of senior secured notes due 2029 (the “Senior Secured Notes” and, collectively with the Senior Guaranteed Notes, the “Notes”), for an aggregate principal amount of $1.0 billion. The Company intends to use the proceeds from the sale of the Senior Guaranteed Notes and the Senior Secured Notes, together with cash on hand, to redeem all its outstanding 9.125% Priority Guaranteed Notes due 2023 and 10.875% Senior Secured Notes due 2023, respectively, concurrently with the respective closing of the Senior Guaranteed Notes and Senior Secured Notes offerings (including to pay fees and expenses in connection with such redemptions).

 

 

 

 

 

The Senior Guaranteed Notes will be guaranteed on a senior unsecured basis by RCI Holdings LLC, which owns 100% of the equity interests of certain of the Company’s wholly-owned vessel-owning subsidiaries.

 

The Senior Secured Notes will be guaranteed by Celebrity Cruises Inc., Celebrity Cruises Holdings Inc. and certain of the Company’s wholly-owned vessel owning subsidiaries. The Senior Secured Notes and the related guarantees will be secured by 26 of the Company’s vessels and material intellectual property of the Company in an amount not to exceed permitted capacity under the Company’s existing indebtedness.

 

 

[Biker19]

From the same filing:

 

Recent Developments

 

Bookings Update

 

The Company’s demand remains strong, with bookings significantly outpacing 2019 levels. The Company announced the easing of testing and vaccination protocols from most itineraries on August 23, 2022, resulting in an immediate positive impact on bookings for both 2022 and 2023 sailings. Since the announcements, overall bookings have been significantly higher versus the same period in 2019. From a cumulative standpoint, 2023 remains booked within historical ranges at much higher rates.

[BermudaBound2014]

Here's an article from Bloomberg on today's SEC filing: 

 

 

 

https://finance.yahoo.com/news/royal-caribbean-taps-junk-bond-134737753.html

 

 

Edited September 22, 2022 by BermudaBound2014

[grandgeezer]

1 hour ago, Biker19 said:

From the same filing:

 

Recent Developments

 

Bookings Update

 

The Company’s demand remains strong, with bookings significantly outpacing 2019 levels. The Company announced the easing of testing and vaccination protocols from most itineraries on August 23, 2022, resulting in an immediate positive impact on bookings for both 2022 and 2023 sailings. Since the announcements, overall bookings have been significantly higher versus the same period in 2019. From a cumulative standpoint, 2023 remains booked within historical ranges at much higher rates.

Yet the stock sits almost $90 per share below it’s all time high of $136+, the last I looked. The $3.16 per share dividend is still nowhere to be seen. Tell you a lot about what the professional investors think of the future of the company, at least short term.

[Biker19]

2 minutes ago, grandgeezer said:

Tell you a lot about what the professional investors think of the future of the company, at least short term.

Not sure what they see even at this level.

[grandgeezer]

56 minutes ago, Biker19 said:

Not sure what they see even at this level.

They probably see the massive debt the lines have taken on and what’s happening in the world financially such as inflation and possible a deeper recession. Cruising is considered discretionary spending and that’s one of the first things that gets cut when money gets tight.

[clskinsfan]

1 hour ago, Biker19 said:

Not sure what they see even at this level.

They see 23 Billion in debt and a B2 credit rating. 

[Baron Barracuda]

Consider that 12/19 pre-pandemic the market valued RCL at $40B ($12B debt + 209mm shares @ $136).  Today's value is $36B ($24B debt + 255mm shares @ $47).  After being shut down for almost two years having enterprise value of  business down only 10% isn't bad.  A $15 increase in stock price to $62 would get them back to the 12/19 level.  Stock was in $60's four months ago so if reports of strong bookings translate into positive cash flow and earnings could soon get it there again.

[grandgeezer]

33 minutes ago, Baron Barracuda said:

Consider that 12/19 pre-pandemic the market valued RCL at $40B ($12B debt + 209mm shares @ $136).  Today's value is $36B ($24B debt + 255mm shares @ $47).  After being shut down for almost two years having enterprise value of  business down only 10% isn't bad.  A $15 increase in stock price to $62 would get them back to the 12/19 level.  Stock was in $60's four months ago so if reports of strong bookings translate into positive cash flow and earnings could soon get it there again.

Stock price was over $90 in February of this year and over $98 in November of 2022, how does that work out in your calculations?

[grandgeezer]

1 hour ago, grandgeezer said:

Stock price was over $90 in February of this year and over $98 in November of 2022, how does that work out in your calculations?

Should be November of 2021.

[exm]

If this dips below $40, I'll be all-in.

[grandgeezer]

2 hours ago, exm said:

If this dips below $40, I'll be all-in.

What do you consider all in, more than the 100 shares it takes to get the shareholder obc.

[mcrcruiser]

September 23 m2022  After hours price of RCL $44.21  , another .21 cents per share in the red after dropping  $2.58  in the regular session  . imo , this market has not seen a bottom  ,It may get a dead cat bounce  but ,it is headed a lot lower . Better to be short than  long these days  ,Because the  FED  has to keep raining interest rates ,few , very few companies can generate enough cash flow for  expansion needs  ,Thus they will be borrowing at ever higher interest rates  & thus their earnings will decrease dramatically , sort of  like a snow ball going down hill 

There is no bright side to this market with a  tough recession looming  & much higher unemployment  in the future , so how can the stock market rebound in that negative environment never the less cruise line stocks servicing very high debt loads 

 

Botton line is do not buy 100 shares if RCL stock .I t definitely could see prices in the $20s per share  & if RCL does need more cash flow all they need do is float a Billion  in new stock shares like CCL just did to  their existing share holders , The last we saw that is called  dilution  

 

You should ask your self is the stock holder share  benefit  worth that risk ?

 

 

 

 

 

  

 

 

[Morecruisesplz]

20 minutes ago, mcrcruiser said:

September 23 m2022  After hours price of RCL $44.21  , another .21 cents per share in the red after dropping  $2.58  in the regular session  . imo , this market has not seen a bottom  ,It may get a dead cat bounce  but ,it is headed a lot lower . Better to be short than  long these days  ,Because the  FED  has to keep raining interest rates ,few , very few companies can generate enough cash flow for  expansion needs  ,Thus they will be borrowing at ever higher interest rates  & thus their earnings will decrease dramatically , sort of  like a snow ball going down hill 

There is no bright side to this market with a  tough recession looming  & much higher unemployment  in the future , so how can the stock market rebound in that negative environment never the less cruise line stocks servicing very high debt loads 

 

Botton line is do not buy 100 shares if RCL stock .I t definitely could see prices in the $20s per share  & if RCL does need more cash flow all they need do is float a Billion  in new stock shares like CCL just did to  their existing share holders , The last we saw that is called  dilution  

 

You should ask your self is the stock holder share  benefit  worth that risk ?

 

 

 

 

 

  

 

 

I bought at $25 as Covid hit but sold in the $50s. I should have held on.

[mcrcruiser]

3 minutes ago, fredmdcruisers said:

I bought at $25 as Covid hit but sold in the $50s. I should have held on.

Never ever think that you did wrong . That is a  nice gain . It is  Important to take gains  . Gains helps the mind for future gains , I have been  triple shorting the S& P with excellent results . Easy  peasy in this market as it sinks lower