RCL trying new bond offering

[npcl]

RCL is trying to raises 3.3 billion with a new bond offering.  They will be pledging 28 ships as collateral.

 

https://finance.yahoo.com/news/royal-caribbean-pledges-28-ships-122345734.html

[Fouremco]

Yikes. Gloomier and gloomier.

[Bo1953]

Heck, I would not mind having a direct stake in Edge and Apex....

 

bon voyage

[Doubt It]

Hence the slowness of refunds and all the excuses.

[BigAl94]

Who would lend those sort of funds on assets with questionable future value?

[ECCruise]

13 minutes ago, BigAl94 said:

Who would lend those sort of funds on assets with questionable future value?

Still a lot of stupid money out there. 

But I agree, the collateral would be depreciating assets that they had to recoup because the original operator couldn't function by using them for their sole purpose, cruise vessels.

[yorky]

18 minutes ago, BigAl94 said:

Who would lend those sort of funds on assets with questionable future value?

Prepare to be surprised.

[Denny01]

RCL isn’t the only one, Viking is going for a Bond also.

 

Den

[npcl]

52 minutes ago, BigAl94 said:

Who would lend those sort of funds on assets with questionable future value?

High interest rate, first in line for assets in case of bankruptcy.  Vulture hedge funds make a living out of risky offerings, then take over the company in a BK.  Highly unlikely  they would ever claim the ships, more likely though to be first in line trading their bonds for equity in a restructuring.

[Prost Seattle]

The odd thing about this recession/depression is there is still a lot of money out there.  Apple still has $233 Billion, etc.  

[ECCruise]

22 minutes ago, Prost Seattle said:

The odd thing about this recession/depression is there is still a lot of money out there.  Apple still has $233 Billion, etc.  

Yes.

And that is why the cruise companies are in such dire straits.  While many corporations maintained a strong cash posture and others a more measured cash posture, the cruise lines blew their massive profits on stock buybacks, dividends and nosebleed executive salary.

And found empty coffers when things changed.  To think that the party would go on forever was stupid corporate planning and now they are forced to put themselves into even deeper (and way more expensive) debt.  In a market that will be in all likelihood contacting quickly.

[Bo1953]

2 hours ago, Denny01 said:

RCL isn’t the only one, Viking is going for a Bond also.

 

Den

Den,

 

Why did you have to sink that ship? LOL

 

Let them believe that it is only X in this same situation... "looking for cash and investors to tie them over"!!!

 

bon voyage

[Denny01]

Anybody want to join me and put a bit of cash into one of the Bonds and end up with our own cruise ship!?! Just think of it: we could pick our own itineraries; assign ourselves the best pool lounge chairs; walk around with our ascots and blazers: “Well Bo, what do you think? Should we dine at the MDR head table or are you getting too tired of that, and we’ll have them set a table up on the Bridge and we can give rudder orders was we dine!?”.  

 

Just an idea......

 

Den

[az_tchr]

23 minutes ago, Bo1953 said:

Den,

 

Why did you have to sink that ship? LOL

 

Let them believe that it is only X in this same situation... "looking for cash and investors to tie them over"!!!

 

bon voyage

Norwegian sold a convertible bond issue.  Not a high interest rate.  

Most RCCL ships are fairly new and have been well maintained.  As security for a bond would think worth an appraisal using today and lend at about 50% or a bit more.

Got to remember trillions of $$ out there looking for a home.  With interest rates near zero getting several times that looks good to some.

[az_tchr]

2 minutes ago, Denny01 said:

Anybody want to join me and put a bit of cash into one of the Bonds and end up with our own cruise ship!?! Just think of it: we could pick our own itineraries; assign ourselves the best pool lounge chairs; walk around with our ascots and blazers: “Well Bo, what do you think? Should we dine at the MDR head table or are you getting too tired of that, and we’ll have them set a table up on the Bridge and we can give rudder orders was we dine!?”.  

 

Just an idea......

 

Den

Would think that would be rudderly ridiculous!

[npcl]

1 hour ago, Prost Seattle said:

The odd thing about this recession/depression is there is still a lot of money out there.  Apple still has $233 Billion, etc.  

The fed is dumping money into the economy at a rate never seen before.  For example their 750 billion in bond purchases to keep the bond market liquid.

[Bo1953]

3 hours ago, Denny01 said:

Anybody want to join me and put a bit of cash into one of the Bonds and end up with our own cruise ship!?! Just think of it: we could pick our own itineraries; assign ourselves the best pool lounge chairs; walk around with our ascots and blazers: “Well Bo, what do you think? Should we dine at the MDR head table or are you getting too tired of that, and we’ll have them set a table up on the Bridge and we can give rudder orders was we dine!?”.  

 

Just an idea......

 

Den

Count me in, Capt'n!!!

 

bon voyage

[ipeeinthepool]

13 hours ago, Denny01 said:

Anybody want to join me and put a bit of cash into one of the Bonds and end up with our own cruise ship!?! Just think of it: we could pick our own itineraries; assign ourselves the best pool lounge chairs; walk around with our ascots and blazers: “Well Bo, what do you think? Should we dine at the MDR head table or are you getting too tired of that, and we’ll have them set a table up on the Bridge and we can give rudder orders was we dine!?”.  

 

Just an idea......

 

Den

 

Sounds good to me.  Can I get my own pool?

[Bo1953]

25 minutes ago, ipeeinthepool said:

 

Sounds good to me.  Can I get my own pool?

Sure, which one would you want?

 

Or would hot tub work just as well?

 

bon voyage

[ipeeinthepool]

1 minute ago, Bo1953 said:

Sure, which one would you want?

 

Or would hot tub work just as well?

 

bon voyage

 

Thanks.  I'd like to be in the Solarium.  A hot tub would work perfectly.

[Doubt It]

16 hours ago, ECCruise said:

Yes.

And that is why the cruise companies are in such dire straits.  While many corporations maintained a strong cash posture and others a more measured cash posture, the cruise lines blew their massive profits on stock buybacks, dividends and nosebleed executive salary.

And found empty coffers when things changed.  To think that the party would go on forever was stupid corporate planning and now they are forced to put themselves into even deeper (and way more expensive) debt.  In a market that will be in all likelihood contacting quickly.

 

ECC, thank you for telling it like it is.

 

I just finished reading about a Canadian ladies garment store, Aritzia, with +60 stores in Canada and about 30 in the USA......this company had 1 years revenue stowed away in conservative investments. The CEO says there is some concern about the sector but not about the company. The company share price was up 37% in 2019. 

 

So, if this small company can have a years revenue contingency, why not the cruise lines?

 

I suspect GREED and arrogance might have a tiny bit to do with it. Also from the actions of the cruise lines in the past 5 years, I believe they took for granted the repeat cruisers,  many of whom act like lap dogs for the cruise lines.

 

Now the cruise lines have the nerve to hold on to peoples deposits and final payments, the height of incompetence and disregard for the consumer.

 

I would recommend that cruisers consider boycotting cruise lines based on their past and current behaviors.

 

 

[Bo1953]

20 minutes ago, Doubt It said:

 

ECC, thank you for telling it like it is.

 

I just finished reading about a Canadian ladies garment store, Aritzia, with +60 stores in Canada and about 30 in the USA......this company had 1 years revenue stowed away in conservative investments. The CEO says there is some concern about the sector but not about the company. The company share price was up 37% in 2019. 

 

So, if this small company can have a years revenue contingency, why not the cruise lines?

 

I suspect GREED and arrogance might have a tiny bit to do with it. Also from the actions of the cruise lines in the past 5 years, I believe they took for granted the repeat cruisers,  many of whom act like lap dogs for the cruise lines.

 

Now the cruise lines have the nerve to hold on to peoples deposits and final payments, the height of incompetence and disregard for the consumer.

 

I would recommend that cruisers consider boycotting cruise lines based on their past and current behaviors.

I second that, this way those of us who wish to sail may have a better and enhanced experience with a 'voluntary' reduction in passengers... which will go a long way towards 'improved' passenger current and future behaviour, too!
 

Great suggestion, I can only presume you are boycotting all cruise lines, until???

 

Although I do not use the outdoor pools, yet that could portend fewer chair hogs! LOL

 

bon voyage

[hcat]

16 hours ago, az_tchr said:

Norwegian sold a convertible bond issue.  Not a high interest rate.  

Most RCCL ships are fairly new and have been well maintained.  As security for a bond would think worth an appraisal using today and lend at about 50% or a bit more.

Got to remember trillions of $$ out there looking for a home.  With interest rates near zero getting several times that looks good to some.

I recall that a few yrs back... the Gen Motors bond holders did not do so great..thought they had a safe investment!

[TeeRick]

16 hours ago, Denny01 said:

Anybody want to join me and put a bit of cash into one of the Bonds and end up with our own cruise ship!?! Just think of it: we could pick our own itineraries; assign ourselves the best pool lounge chairs; walk around with our ascots and blazers: “Well Bo, what do you think? Should we dine at the MDR head table or are you getting too tired of that, and we’ll have them set a table up on the Bridge and we can give rudder orders was we dine!?”.  

 

Just an idea......

 

Den

At first blush sounds very appealing.  But would you really want everybody here on CC criticizing Denny Cruise Lines for every little thing that happens and making nasty comments about everything you do and say?  I will pass on giving you cash for this but good luck anyway!

[TeeRick]

21 hours ago, npcl said:

RCL is trying to raises 3.3 billion with a new bond offering.  They will be pledging 28 ships as collateral.

 

https://finance.yahoo.com/news/royal-caribbean-pledges-28-ships-122345734.html

 

So a $3.3B bond offering but need to use it to pay off $2.35B to Morgan Stanley.  

This comes to mind........  Robbing Peter to Pay Paul.