Alternative Financing

[mdsgu]

Anyone else see it as a bad sign that NCL has contracted with Goldman Sachs to explore alternative financing options?  Read that yesterday.....

[ColeThornton]

No.   Their responsibility to stockholders is to explore all options available.  Key word at this point is "explore".

[buckeyefrank]

Depends on what you mean by bad sign.    Bad sign as in we won't cruise again soon, or bad sign, ncl is going under?

 

I see it more of a sign that NCL understands they won't be cruising for a period of time and need to secure cash for the cancellations that are inevitable.

[Formula280SS]

3 hours ago, mdsgu said:

Anyone else see it as a bad sign that NCL has contracted with Goldman Sachs to explore alternative financing options?  Read that yesterday.....

 

Really bad IMO. 

 

Really, really poor choice and a sign of total desperation. 

 

A chance at a PIPE deal for equity will dilute shareholders, worse if it is high interest convertible debt, and if deemed a Change in Control, all of the existing debt instruments (with favorable rates and terms) are "off the table" at the discretion of the lenders; big banks (then new terms and conditions; i.e., and rates).

 

Double trouble.

 

A deal with a large sovereign fund or government pension fund (with ship builders in country) would be best; but none really in such Western countries.

 

Wouldn't it be a beneficial cause and effect travesty if it was the China Investment Corporation picking up the cruise line for 10-20 cents on the dollar 'pre-COVID 19?

 

 

Edited April 21, 2020 by Formula280SS