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24 minutes ago, greykitty said:

What Is an 8-K?

An 8-K is a report of unscheduled material events or corporate changes at a company that could be of importance to the shareholders or the Securities and Exchange Commission (SEC). Also known as a Form 8-K, the report notifies the public of events reported including acquisition, bankruptcy, resignation of directors, or a change in the fiscal year.

An 8-K is required before an offering. The offering happened today and I will bet it successful.

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13 hours ago, CBWIR said:

An 8-K is required before an offering. The offering happened today and I will bet it successful.

Good.  Then they will have no problem giving me my refund.  lol

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Latest, more junk bonds sold/  Still not enough to meet the 1 Billion of other buys for the L. Catterton purchase to close.

 

(Bloomberg) -- Norwegian Cruise Line Holdings Ltd. sold a larger-than-expected $675 million of junk bonds that have a pledge on the company’s vessels and islands as it seeks to raise as much as $2 billion from a broader financing to survive the travel industry shutdown.

The cruise line operator priced the four-year secured bonds, which were increased from $600 million, at a coupon of 12.25% and a discount of 99 cents on the dollar for an all-in yield of 12.575%, according to people with knowledge of the transaction. The bond was earlier offered with a coupon of 12.25% to 12.5% with a discount between 98.5 to 99, the people said, asking not to be identified because the details are private.

A representative for Goldman Sachs Group Inc., which is leading the sale, declined to comment.

The financing also includes $650 million of exchangeable notes, a public offering of $350 million ordinary shares and a $400 million investment by an affiliate of private equity firm L Catterton, which will be entitled to nominate one director to the company’s board, according to a statement.

The shares priced at $11 each, raising $400 million, according to people familiar with the matter who asked not to be identified because the information wasn’t public yet.

Norwegian has the youngest fleet, a strong management team and the highest yield among all cruise lines, said Scott Dahnke, L Catterton’s global co-chief executive officer.

“We love NCL’s positioning, it has an extremely strong consumer proposition.,” Dahnke said. “The research is unequivocal that cruisers want to cruise.”

Norwegian said in a regulatory filing on Tuesday that disruption from the pandemic and debt maturities over the next year have raised “substantial doubt” over its ability to remain a going concern, assuming no additional financing. Norwegian also said it would delay its first-quarter earnings report. Preliminary earnings showed the company expects a first-quarter net loss of as much as $1.93 billion.

The company’s shares closed 23% lower at $11.18 on Tuesday.

Islands Pledged

Norwegian said the junk bond will be secured by first-priority claims on two of the company’s vessels, two islands used in the operations of its business and intellectual property.

Read more: Norwegian Cruise pledges islands and ships in bond sale talks

The new exchangeable notes are expected to carry a 20% to 25% conversion premium with a coupon between 5.75% and 6.25%, according to terms reviewed by Bloomberg. The stock sale does not have an offering range. Both are expected to price Tuesday evening in New York.

Norwegian’s revenue has been squeezed as governments around the world instruct their residents to stay at home for all but essential travel to stem the spread of Covid-19. It has suspended cruises until at least June 30, recently furloughed about 20% of its workforce and is burning about $110 million to $150 million of cash each month, according to an April 27 news release.

The company’s 3.625% unsecured notes due in 2024 have fallen to distressed levels. They last traded at 64.625 cents on the dollar -- from above par in late February -- for a yield of 14.4%, according to Trace data.

Norwegian is also improving liquidity by an additional $1 billion through a series of amendments on existing loans that allows the company to defer certain debt payments, according to a filing. Some of this relief has already been granted and some is dependent on the company successfully raising at least $1 billion in financing by June 30.

“Contingent on completion of the transactions, the company expects to have approximately $3 billion of liquidity,” a spokesperson for Norwegian said in an email to Bloomberg. It will leave the company positioned to withstand well over 12 months of voyage suspensions in a potential downside scenario, the spokesperson added.

(Updates with pricing in fifth paragraph.)

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.

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4 hours ago, Foyt said:

Latest, more junk bonds sold/  Still not enough to meet the 1 Billion of other buys for the L. Catterton purchase to close.

 

(Bloomberg) -- Norwegian Cruise Line Holdings Ltd. sold a larger-than-expected $675 million of junk bonds that have a pledge on the company’s vessels and islands as it seeks to raise as much as $2 billion from a broader financing to survive the travel industry shutdown.

The cruise line operator priced the four-year secured bonds, which were increased from $600 million, at a coupon of 12.25% and a discount of 99 cents on the dollar for an all-in yield of 12.575%, according to people with knowledge of the transaction. The bond was earlier offered with a coupon of 12.25% to 12.5% with a discount between 98.5 to 99, the people said, asking not to be identified because the details are private.

A representative for Goldman Sachs Group Inc., which is leading the sale, declined to comment.

The financing also includes $650 million of exchangeable notes, a public offering of $350 million ordinary shares and a $400 million investment by an affiliate of private equity firm L Catterton, which will be entitled to nominate one director to the company’s board, according to a statement.

The shares priced at $11 each, raising $400 million, according to people familiar with the matter who asked not to be identified because the information wasn’t public yet.

Norwegian has the youngest fleet, a strong management team and the highest yield among all cruise lines, said Scott Dahnke, L Catterton’s global co-chief executive officer.

“We love NCL’s positioning, it has an extremely strong consumer proposition.,” Dahnke said. “The research is unequivocal that cruisers want to cruise.”

Norwegian said in a regulatory filing on Tuesday that disruption from the pandemic and debt maturities over the next year have raised “substantial doubt” over its ability to remain a going concern, assuming no additional financing. Norwegian also said it would delay its first-quarter earnings report. Preliminary earnings showed the company expects a first-quarter net loss of as much as $1.93 billion.

The company’s shares closed 23% lower at $11.18 on Tuesday.

Islands Pledged

Norwegian said the junk bond will be secured by first-priority claims on two of the company’s vessels, two islands used in the operations of its business and intellectual property.

Read more: Norwegian Cruise pledges islands and ships in bond sale talks

The new exchangeable notes are expected to carry a 20% to 25% conversion premium with a coupon between 5.75% and 6.25%, according to terms reviewed by Bloomberg. The stock sale does not have an offering range. Both are expected to price Tuesday evening in New York.

Norwegian’s revenue has been squeezed as governments around the world instruct their residents to stay at home for all but essential travel to stem the spread of Covid-19. It has suspended cruises until at least June 30, recently furloughed about 20% of its workforce and is burning about $110 million to $150 million of cash each month, according to an April 27 news release.

The company’s 3.625% unsecured notes due in 2024 have fallen to distressed levels. They last traded at 64.625 cents on the dollar -- from above par in late February -- for a yield of 14.4%, according to Trace data.

Norwegian is also improving liquidity by an additional $1 billion through a series of amendments on existing loans that allows the company to defer certain debt payments, according to a filing. Some of this relief has already been granted and some is dependent on the company successfully raising at least $1 billion in financing by June 30.

“Contingent on completion of the transactions, the company expects to have approximately $3 billion of liquidity,” a spokesperson for Norwegian said in an email to Bloomberg. It will leave the company positioned to withstand well over 12 months of voyage suspensions in a potential downside scenario, the spokesperson added.

(Updates with pricing in fifth paragraph.)

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.

Your comment "still not enough" for the closing is simply not true. 

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4 hours ago, Foyt said:

Latest, more junk bonds sold/  Still not enough to meet the 1 Billion of other buys for the L. Catterton purchase to close.

 

(Bloomberg) -- Norwegian Cruise Line Holdings Ltd. sold a larger-than-expected $675 million of junk bonds that have a pledge on the company’s vessels and islands as it seeks to raise as much as $2 billion from a broader financing to survive the travel industry shutdown.

The cruise line operator priced the four-year secured bonds, which were increased from $600 million, at a coupon of 12.25% and a discount of 99 cents on the dollar for an all-in yield of 12.575%, according to people with knowledge of the transaction. The bond was earlier offered with a coupon of 12.25% to 12.5% with a discount between 98.5 to 99, the people said, asking not to be identified because the details are private.

A representative for Goldman Sachs Group Inc., which is leading the sale, declined to comment.

The financing also includes $650 million of exchangeable notes, a public offering of $350 million ordinary shares and a $400 million investment by an affiliate of private equity firm L Catterton, which will be entitled to nominate one director to the company’s board, according to a statement.

The shares priced at $11 each, raising $400 million, according to people familiar with the matter who asked not to be identified because the information wasn’t public yet.

Norwegian has the youngest fleet, a strong management team and the highest yield among all cruise lines, said Scott Dahnke, L Catterton’s global co-chief executive officer.

“We love NCL’s positioning, it has an extremely strong consumer proposition.,” Dahnke said. “The research is unequivocal that cruisers want to cruise.”

Norwegian said in a regulatory filing on Tuesday that disruption from the pandemic and debt maturities over the next year have raised “substantial doubt” over its ability to remain a going concern, assuming no additional financing. Norwegian also said it would delay its first-quarter earnings report. Preliminary earnings showed the company expects a first-quarter net loss of as much as $1.93 billion.

The company’s shares closed 23% lower at $11.18 on Tuesday.

Islands Pledged

Norwegian said the junk bond will be secured by first-priority claims on two of the company’s vessels, two islands used in the operations of its business and intellectual property.

Read more: Norwegian Cruise pledges islands and ships in bond sale talks

The new exchangeable notes are expected to carry a 20% to 25% conversion premium with a coupon between 5.75% and 6.25%, according to terms reviewed by Bloomberg. The stock sale does not have an offering range. Both are expected to price Tuesday evening in New York.

Norwegian’s revenue has been squeezed as governments around the world instruct their residents to stay at home for all but essential travel to stem the spread of Covid-19. It has suspended cruises until at least June 30, recently furloughed about 20% of its workforce and is burning about $110 million to $150 million of cash each month, according to an April 27 news release.

The company’s 3.625% unsecured notes due in 2024 have fallen to distressed levels. They last traded at 64.625 cents on the dollar -- from above par in late February -- for a yield of 14.4%, according to Trace data.

Norwegian is also improving liquidity by an additional $1 billion through a series of amendments on existing loans that allows the company to defer certain debt payments, according to a filing. Some of this relief has already been granted and some is dependent on the company successfully raising at least $1 billion in financing by June 30.

“Contingent on completion of the transactions, the company expects to have approximately $3 billion of liquidity,” a spokesperson for Norwegian said in an email to Bloomberg. It will leave the company positioned to withstand well over 12 months of voyage suspensions in a potential downside scenario, the spokesperson added.

(Updates with pricing in fifth paragraph.)

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.

 

Over $2B raised in 24 hours...

 

https://www.marketwatch.com/press-release/norwegian-cruise-line-holdings-ltd-successfully-secures-over-2-billion-of-additional-liquidity-in-oversubscribed-capital-markets-transactions-2020-05-06

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