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heidikay
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  • 3 weeks later...

From the RCG SEC filling today:

 

MIAMI, January 19, 2021 – Royal Caribbean Group (NYSE: RCL) today announced it has entered into a definitive agreement to sell its Azamara brand to Sycamore Partners, a private equity firm specializing in consumer, retail and distribution investments, in an all-cash carve-out transaction for $201 million, subject to certain adjustments and closing conditions. Sycamore Partners will acquire the entire Azamara brand, including its three-ship fleet and associated intellectual property. The transaction is subject to customary conditions and is expected to close in the first quarter of 2021. 

 

Royal Caribbean Group noted the transaction allows it to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea brands.

 

“Our strategy has evolved into placing more of our resources behind three global brands, Royal Caribbean International, Celebrity Cruises and Silversea, and working to grow them as we emerge from this unprecedented period,” said Richard D. Fain, Chairman and Chief Executive Officer of Royal Caribbean Group. “Even so, Azamara remains a strong brand with its own tremendous potential for growth, and Sycamore’s track record demonstrates that they will be good stewards of what the Azamara team has built over the past 13 years.”

 

“We are pleased that Royal Caribbean Group has entrusted Sycamore to support Azamara in its next phase of growth,” said Stefan Kaluzny, Managing Director of Sycamore Partners. “We are excited to partner with the Azamara team and build on their many years of success serving the brand's loyal customers. We believe Azamara will remain a top choice for discerning travelers as the cruising industry recovers over time”.

 

Azamara’s value proposition and operations will remain consistent under the new arrangement, and Royal Caribbean Group will work in close collaboration on a seamless transition for Azamara employees, customers and other stakeholders. In conjunction with the transaction, Azamara Chief Operating Officer Carol Cabezas has been appointed President of the brand. 

 

The transaction will result in a one-time, non-cash impairment charge of approximately $170 million. The sale of Azamara is not expected to have a material impact on Royal Caribbean Group’s future financial results.

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  • 2 weeks later...

Not directly stock related but:

 

Rob Zeiger, VP and global chief communications officer at Royal Caribbean Group since 2013, has left the company.

 

Zeiger shaped the group's communications strategy, served as high-level spokesman and was instrumental in many key initiatives. These included the WWF partnershiphurricane humanitarian relief, a wind-farm initiative to help offset greenhouse gas emissions, and major events like a digital rollout and numerous ship introductions.

 

Just on Wednesday, he participated in the kick-off webinar in a series on sustainable tourism sponsored by Destinations Together and the Global Sustainable Tourism Council.

 

'We thank him for his many years of service to Royal Caribbean Group,' the company said in a statement.

Wise counsel

'Rob's experience, thoughtfulness and composure were of great benefit to the industry and the company through the many challenges that arose during his tenure. His wise counsel was of particular benefit to CLIA over the last and most difficult year,' said Adam Goldstein, immediate past global chairman, Cruise Lines International Association, and former vice chairman, Royal Caribbean Group.

 

Zeiger most recently reported to Donna Hrinak, who joined as SVP corporate affairs in September, taking on responsibility for government relations, communications and public relations.

 

Zeiger brought diverse experience to his Royal Caribbean role. He had been SVP communications with the Philadelphia Eagles and spent 11 years as director of communications for Amway. Earlier roles were as VP and creative director for Weber Shandwick's Detroit office, director of special projects for Michigan's Wayne County executive office and staff writer for The Detroit News.

 

Chief Communications Officer Rob Zeiger has left Royal Caribbean Group (seatrade-cruise.com)

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  • 4 weeks later...
Royal Caribbean Group got an additional 12-month deferral of debt payments for 14 of its ships built in Germany and France
 

The company was able to amend loans backed by Hermes, Germany's export-credit agency, to finance Celebrity Eclipse, Celebrity Equinox, Celebrity Reflection, Celebrity Silhouette, Odyssey of the Seas, Celebrity Solstice, Spectrum of the Seas, Anthem of the Seas and Quantum of the Seas.

These will allow Royal Caribbean to defer approximately $570m of principal amortization payments due between April 2021 and March 2022.

 

In another amended Hermes-backed loan related to Ovation of the Seas, the company may defer approximately $90m of principal amortization payments due between May 2021 and April 2022.

BpiFAE amendments

Further loan amendments were agreed with BpiFrance Assurance Export related to loans for Celebrity Edge, Celebrity Apex and Harmony of the Seas, all built in France.

 

With these, Royal Caribbean may defer approximately $265m of principal amortization payments due between April 2021 and March 2022 for an additional 12 months.

 

And an amended BpiFAE-backed loan for Symphony of the Seas allows the company to defer for 12 more months approximately $125m of principal amortization payments due between April 2021 and March 2022.

Follows other loan amendments

These changes closely follow other amended loan facilities with three banks and with Finland's export-credit agency, Finnvera, related to three Icon-class ships.

 

https://www.seatrade-cruise.com/finance/royal-caribbean-gets-105bn-debt-holiday-14-ships

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That all makes sense and is good for all parties involved. It would do no good to not defer payments. Even though a cruise ship may be worth a billion dollars it pretty much has zero value to anyone other than a cruise line. So it is beneficial to everyone involved to help the cruise lines get through this period of time.

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8 hours ago, Biker19 said:
Royal Caribbean Group got an additional 12-month deferral of debt payments for 14 of its ships built in Germany and France

 

Usually, in situations like this, there is a price to be paid for deferring loan payments.  For example, did RCL have to agree to a higher interest rate to get the extension?  I don't know.  Does anyone have  answer?

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3 minutes ago, radarcruiser said:

Sitting here SMH at the continued rise in the stock price over the past week.  Sold 90 calls at 82.  May get sold out, but I guess I'm ok with that.  Just can't see any fundamental reason this is a 94.00 stock with no visible path to earnings again.

 

Agree, but this stock market has become counter intuitive.  The market is also forward looking.  Right now, the bets are on successful mass vaccination and return to "almost normal."   The problem may come when "almost normal" is reached and folks begin to look ahead to what will certainly be dismal earnings and profitability.

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10 minutes ago, radarcruiser said:

Sitting here SMH at the continued rise in the stock price over the past week.  Sold 90 calls at 82.  May get sold out, but I guess I'm ok with that.  Just can't see any fundamental reason this is a 94.00 stock with no visible path to earnings again.

 

No visible path? Maybe I'm imagining things, but last year I recall people saying that a vaccine would signal a return to normal pretty soon. Since vaccinations are underway, that would seem like a visible path, would it not?

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2 minutes ago, yogimax said:

Usually, in situations like this, there is a price to be paid for deferring loan payments.  For example, did RCL have to agree to a higher interest rate to get the extension?  I don't know.  Does anyone have  answer?

 

Who knows, and does it really matter in the big picture to the "cruisers" on the street.  People will either being sailing on this ship in a year, or cruises will no longer exist. IMO, the fact that interest rates might be higher a year from now is the least of RC concerns at this moment in time.  

 

Hope floats and that's what they are basing their future on.

 

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4 minutes ago, DCGuy64 said:

No visible path? Maybe I'm imagining things, but last year I recall people saying that a vaccine would signal a return to normal pretty soon. Since vaccinations are underway, that would seem like a visible path, would it not?

They are a long way from normal operations.  When they finally get some relief from CDC, it will be with much reduced capacity and lots of extra costs.  Add on the issues with getting approval for port calls in hundreds of locations, if there is a visible path to profitability, its at least a year or two away.  That's not even considering higher debt service costs.

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1 minute ago, radarcruiser said:

They are a long way from normal operations.  When they finally get some relief from CDC, it will be with much reduced capacity and lots of extra costs.  Add on the issues with getting approval for port calls in hundreds of locations, if there is a visible path to profitability, its at least a year or two away.  That's not even considering higher debt service costs.

Only time will tell, but I think the "at least a year or two away" prognostication is unrealistically pessimistic. (but who knows? you might be right) At the very least, people who helped RCCL's surging stock price this week disagree with you.

 

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9 minutes ago, DCGuy64 said:

 At the very least, people who helped RCCL's surging stock price this week disagree with you.

 

Not necessarily. They are not betting on RCL's return to profitability, but on whether someone else will pay more for the stock than they did. Maybe some optimist like you?

Edited by latserrof
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9 minutes ago, latserrof said:

Not necessarily. They are not betting on RCL's return to profitability, but on whether someone else will pay more for the stock than they did. Maybe some optimist like you?

I'm not optimistic about the short term of cruising, somewhat more hopeful for the long term, though.

 

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23 minutes ago, latserrof said:

Not necessarily. They are not betting on RCL's return to profitability, but on whether someone else will pay more for the stock than they did. Maybe some optimist like you?

FBN said people are buying rcl because fain said bookings are up 30%. They leave off up 30% from what. I'm betting the traders dont know how long it will be before cruising resumes or that every ship has to be inspected..its a momentum stock, in play short term. Doesnt have anything to do with a long term investment.  With no earnings, as in its posting a loss, no pe to compare. Many stocks posting losses are hard to evaluate long term. 

 

Stock traders love it today. 

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12 minutes ago, Ocean Boy said:

Good Lord, there has to be Cliff Notes somewhere.

What I think it says.  

Still burning through lots of cash every month. 
Still have lots of cash on hand.
Ship builds still in process with delayed delivery dates. 

Lots of demand for cruising.

No definitive date for return to cruising in the USA just yet. 

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36 minutes ago, Ocean Boy said:

Good Lord, there has to be Cliff Notes somewhere.

For that just read the news that came out a couple of days ago - for little things, like the estimated delay for Icon, or the %interest RCCL pays, or other minute detail you may find interesting, you'll have to wade through the report.

 

Biker, who was interested to see that RCCL is being PC, by listing the demographics of its staff for the first time.

Edited by Biker19
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22 minutes ago, atgood said:

What I think it says.  

Still burning through lots of cash every month. 
Still have lots of cash on hand.
Ship builds still in process with delayed delivery dates. 

Lots of demand for cruising.

No definitive date for return to cruising in the USA just yet. 

Thank you. I wonder what sectors the demand for cruises is from? Is it coming from FCCs from cancelled cruises, seasoned cruisers, new cruisers? I would think that would make a difference.

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