News from this morning... thoughts?

[discru]

Royal Caribbean Cruises Ltd. (NYSE: RCL) (the "Company") today announced that it has commenced a private offering of senior secured notes to be issued by the Company in separate series of notes due 2023 and 2025 (together, the "Notes"), for an aggregate principal amount of $3.3 billion.

 

https://www.marketwatch.com/press-release/royal-caribbean-announces-proposed-offering-of-33-billion-senior-secured-notes-2020-05-13

Edited May 13, 2020 by discru
More info

[soremekun]

 

[gc]

21 minutes ago, discru said:

Royal Caribbean Cruises Ltd. (NYSE: RCL) (the "Company") today announced that it has commenced a private offering of senior secured notes to be issued by the Company in separate series of notes due 2023 and 2025 (together, the "Notes"), for an aggregate principal amount of $3.3 billion.

 

https://www.marketwatch.com/press-release/royal-caribbean-announces-proposed-offering-of-33-billion-senior-secured-notes-2020-05-13

The $3.3 billion question is 'will they be able to sell them"

[Biker19]

The SEC filing can be found here:

 

https://www.sec.gov/ix?doc=/Archives/edgar/data/884887/000110465920060465/tm2018985d3_8k.htm

[Georgia_Peaches]

Good for them!  I hope the strategy works.

[orville99]

24 minutes ago, Biker19 said:

The SEC filing can be found here:

 

https://www.sec.gov/ix?doc=/Archives/edgar/data/884887/000110465920060465/tm2018985d3_8k.htm

Interesting read. Being used to pay off the $2.3 billion 364-day term loan they got from Morgan Stanley three weeks ago, and can't be purchased by any entity within the United States. 

[zonacruiser25]

I do not know how to dig down to the real funding source but I am hearing how China is providing loans and just sitting and waiting to seize the assets down the road if there is a default.  Not trying to be a conspiracy type just curious if anyone is able to drill down that far.

[soloadventurer]

5 minutes ago, zonacruiser25 said:

I do not know how to dig down to the real funding source but I am hearing how China is providing loans and just sitting and waiting to seize the assets down the road if there is a default.  Not trying to be a conspiracy type just curious if anyone is able to drill down that far.

 

 

Get the popcorn ready 😂

[Tree_skier]

10 minutes ago, zonacruiser25 said:

I do not know how to dig down to the real funding source but I am hearing how China is providing loans and just sitting and waiting to seize the assets down the road if there is a default.  Not trying to be a conspiracy type just curious if anyone is able to drill down that far.

There is nothing conspiratorial about this at all.  They are doing this across sectors all over the world.

 

https://www.reuters.com/article/us-tmac-m-a-shandong-gold-idUSKBN22K1NI

[NateUpNorth]

9 minutes ago, zonacruiser25 said:

I do not know how to dig down to the real funding source but I am hearing how China is providing loans and just sitting and waiting to seize the assets down the road if there is a default.  Not trying to be a conspiracy type just curious if anyone is able to drill down that far.

A viable strategy by any state, country, business, or individual with cash. I’m sure there’s a few oil sheiks out there that could float the whole number themselves too.....

[TheMastodon]

7 minutes ago, zonacruiser25 said:

I do not know how to dig down to the real funding source but I am hearing how China is providing loans and just sitting and waiting to seize the assets down the road if there is a default.  Not trying to be a conspiracy type just curious if anyone is able to drill down that far.

 

 

Chinese govt. controlled cruise lines when the loan defaults !

 

In all seriousness China finances stuff all over the world - not surprised if this is true.  

 

 

 

 

 

[Tree_skier]

Infect the world, depress the economy, then buy the depressed assets at a discount.  Very shrewd.

[NateUpNorth]

https://www.visualcapitalist.com/global-chinese-financing-is-fueling-megaprojects/ 

 

But it before you get too carried away slinging comments at other countries have a read of the book referenced here:

 

https://en.m.wikipedia.org/wiki/Confessions_of_an_Economic_Hit_Man  

 

 

[NateUpNorth]

32 minutes ago, Tree_skier said:

Yeah but John Perkins didn't poison the world to do it. That's a little bit of a difference here I might 

 

There are some that upon reading the book and understanding exactly how it affected the people it was done to who might feel like the outcomes, whilst different, were fairly equal.

 

But I digress .... back to cruise commentary and discussion.

Edited May 13, 2020 by NateUpNorth

[Maverick61]

Interestingly the SEC document does not list the terms of the new notes.  Seeing what rate they are in the market at will be a good guide to their situation and how desperate they are.  Some tidbits from the SEC filing:

 

As of March 31, 2020, the Company had $2.4 billion in customer deposits. This includes approximately $0.8 billion of future cruise credits related to previously announced voyage cancellations through June 11, 2020. The Company also continues to take future bookings for 2020, 2021 and 2022, and receive new customer deposits and final payments on these bookings.

 

As of April 30, 2020, the Company had liquidity of approximately $2.3 billion all in the form of cash and cash equivalents. On May 4, 2020 the Company increased the 364-day senior secured loan agreement and drew $150 million, further enhancing the Company’s liquidity profile. The Company estimates its cash burn to be, on average, in the range of approximately $250 million to $275 million per month during a prolonged suspension of operations. 

 

The Company has taken significant actions to reduce operating expenses during the suspension of its global cruise operations. In particular, we:

 

·

significantly reduced ship operating expenses, including crew payroll, food, fuel, insurance and port charges;

 

·

further reduced operating expenses as the Company’s ships are currently transitioning into various levels of layup with several ships in the fleet transitioning into cold layup;

 

·

eliminated or significantly reduced marketing and selling expenses for the remainder of 2020;

 

·

reduced and furloughed our workforce, with approximately 23% of our US shoreside employee base being impacted; and

 

·

suspended travel for shoreside employees and instituted a hiring freeze across the organization.

 

The Company estimates that its average ongoing ship operating expenses and administrative expenses are approximately $150 million to $170 million per month during a prolonged suspension of operations. The Company may seek to further reduce this average monthly requirement under a further prolonged non-revenue scenario.

[zonacruiser25]

with all that disclosure, not it is time for Royal (them) to disclose to the revenue source (we the passengers) what they are going to do.  We provide the revenue to make all of the payments they are projecting and deserve to have more valid and reliable short term information so we can make realistic plans and stop betting on the come!

[Judyrem]

21 hours ago, Tree_skier said:

Infect the world, depress the economy, then buy the depressed assets at a discount.  Very shrewd.

Great line.

[firefly333]

21 hours ago, Tree_skier said:

Infect the world, depress the economy, then buy the depressed assets at a discount.  Very shrewd.

I'm on the same page you are, just afraid to say it. 

 

Great plan, oh no we got a virus, dont let them fly around china, let's let then fly to other countries and not tell them its spread person to person. If we have to suffer so do they.

 

Few here seem to take China's 100 year plan seriously. The virus was just a convenient means to ratchet up the plan a notch. Americans only think from one election to the next, not long term.

 

Let's hope rcl survives and the rest of the cruise industry. I've read here NCL is the most on the brink, but who really knows. Go rcl, best of luck. I just want the cruiselines to survive. Reading all these threads yesterday, I went and checked for refunds, none yet. I'm adopting bikers plan to book last minute and hope the refunds comes thru for future bookings. 

[Maverick61]

OUCH - the rates they had to pay are beyond junk bond rates..  They are desperation rates.  Not a good sign financially

 

Royal Caribbean Cruises Ltd. (NYSE: RCL) (the "Company") today announced that it has priced its private offering of $1.0 billion aggregate principal amount of 10.875% Senior Secured Notes due 2023 (the "2023 Notes") and $2.32 billion aggregate principal amount of 11.500% Senior Secured Notes due 2025 (the "2023 Notes," together with the "2025 Notes", the "Notes"). The 2023 Notes will mature on June 1, 2023. The 2025 Notes will mature on June 1, 2025 and are redeemable at the company's option beginning June 1, 2022. The Notes are expected to be issued on or around May 19, 2020.

[A&L_Ont]

On 5/13/2020 at 12:42 PM, Tree_skier said:

There is nothing conspiratorial about this at all.  They are doing this across sectors all over the world.

 

https://www.reuters.com/article/us-tmac-m-a-shandong-gold-idUSKBN22K1NI

 

On 5/13/2020 at 12:45 PM, Tree_skier said:

Infect the world, depress the economy, then buy the depressed assets at a discount.  Very shrewd.

I’m not a conspiracy theorist on a normal day however IMO it’s part of their plan to strengthen their foot hold as a Super Power. I don’t think they released the virus on purpose but they will take advantage of a situation.

 

Did you read this Global News article by chance?  It’s not some random article by a group I’ve never heard of before.  It describes how “United Front groups in Canada helped Beijing stockpile coronavirus safety supplies” and how it also happened around the world. 

 

https://globalnews.ca/news/6858818/coronavirus-china-united-front-canada-protective-equipment-shortage/

Edited May 15, 2020 by A&L_Ont

[Pratique]

3 hours ago, A&L_Ont said:

I’m not a conspiracy theorist on a normal day however IMO it’s part of their plan to strengthen their foot hold as a Super Power. I don’t think they released the virus on purpose but they will take advantage of a situation.

I believe it was Rahm Emanuel, former Chicago mayor, who once said "never allow a good crisis go to waste."

[MacMarauder]

Well, for some promising news for your weekend here is a positive article about vaccine development!

 

https://www.bbc.com/news/health-52674739

[Mapleleafforever]

4 hours ago, MacMarauder said:

Well, for some promising news for your weekend here is a positive article about vaccine development!

 

https://www.bbc.com/news/health-52674739

And here's to also hoping that they can perfect the antibody test to see if people even need the vaccine in the first place. 

[Roger88]

Its good that they came up with at least some sort of a strategy. We’ve been waiting for too long already anyway. But then I read the news about Carnival who announced that they will be laying off hundreds of employees due to the coronavirus pandemic. It made me very said. Such news is a total fail in repect for those companies 

[BirdTravels]

10 minutes ago, Roger88 said:

Its good that they came up with at least some sort of a strategy. We’ve been waiting for too long already anyway. But then I read the news about Carnival who announced that they will be laying off hundreds of employees due to the coronavirus pandemic. It made me very said. Such news is a total fail in repect for those companies 

The news is a bit skewed. While it may be hundreds of salaried workers, it's 10's of thousands of crew members that are out of work.