kvisf
May 11th, 2011, 12:45 PM
The Wall Street Journal had an interesting tidbit in its Market Beat section yesterday:
"The Leveraged Commentary & Data people at Standard & Poor’s are tracking several more issuers trolling the market today, including Regent Seven Seas, IPALCO Enterprises and Unit Corp."
The article notes that junk bond yields are at an all-time low of 6.66%.
There's no explanation why Regent would carry a junk rating, though I suspect it may have something to do with its position as a third-tier subsidiary of Apollo Management via PCH. Putting the bond indebtedness at that level in the corporate structure implies that Apollo perceives distinct value in the Regent brand. Instead of the possible Oceania-fication of Regent that has stirred some angst here, perhaps Oceania will come to be seen as Regent Lite.
Why would Regent be thinking of floating a bond issue? Well, if you want to build a new ship, and money's this cheap, why not?
"The Leveraged Commentary & Data people at Standard & Poor’s are tracking several more issuers trolling the market today, including Regent Seven Seas, IPALCO Enterprises and Unit Corp."
The article notes that junk bond yields are at an all-time low of 6.66%.
There's no explanation why Regent would carry a junk rating, though I suspect it may have something to do with its position as a third-tier subsidiary of Apollo Management via PCH. Putting the bond indebtedness at that level in the corporate structure implies that Apollo perceives distinct value in the Regent brand. Instead of the possible Oceania-fication of Regent that has stirred some angst here, perhaps Oceania will come to be seen as Regent Lite.
Why would Regent be thinking of floating a bond issue? Well, if you want to build a new ship, and money's this cheap, why not?