npcl Posted May 13, 2020 #1 Share Posted May 13, 2020 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 Link to comment Share on other sites More sharing options...
Fouremco Posted May 13, 2020 #2 Share Posted May 13, 2020 Yikes. Gloomier and gloomier. Link to comment Share on other sites More sharing options...
Bo1953 Posted May 13, 2020 #3 Share Posted May 13, 2020 Heck, I would not mind having a direct stake in Edge and Apex.... bon voyage 1 Link to comment Share on other sites More sharing options...
Doubt It Posted May 13, 2020 #4 Share Posted May 13, 2020 Hence the slowness of refunds and all the excuses. 1 Link to comment Share on other sites More sharing options...
BigAl94 Posted May 13, 2020 #5 Share Posted May 13, 2020 Who would lend those sort of funds on assets with questionable future value? Link to comment Share on other sites More sharing options...
ECCruise Posted May 13, 2020 #6 Share Posted May 13, 2020 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. Link to comment Share on other sites More sharing options...
yorky Posted May 13, 2020 #7 Share Posted May 13, 2020 18 minutes ago, BigAl94 said: Who would lend those sort of funds on assets with questionable future value? Prepare to be surprised. Link to comment Share on other sites More sharing options...
Denny01 Posted May 13, 2020 #8 Share Posted May 13, 2020 RCL isn’t the only one, Viking is going for a Bond also. Den 1 Link to comment Share on other sites More sharing options...
npcl Posted May 13, 2020 Author #9 Share Posted May 13, 2020 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. 1 Link to comment Share on other sites More sharing options...
Prost Seattle Posted May 13, 2020 #10 Share Posted May 13, 2020 The odd thing about this recession/depression is there is still a lot of money out there. Apple still has $233 Billion, etc. Link to comment Share on other sites More sharing options...
ECCruise Posted May 13, 2020 #11 Share Posted May 13, 2020 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. Link to comment Share on other sites More sharing options...
Bo1953 Posted May 13, 2020 #12 Share Posted May 13, 2020 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 Link to comment Share on other sites More sharing options...
Denny01 Posted May 13, 2020 #13 Share Posted May 13, 2020 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 3 2 Link to comment Share on other sites More sharing options...
az_tchr Posted May 13, 2020 #14 Share Posted May 13, 2020 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. 1 Link to comment Share on other sites More sharing options...
az_tchr Posted May 13, 2020 #15 Share Posted May 13, 2020 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! 1 Link to comment Share on other sites More sharing options...
npcl Posted May 13, 2020 Author #16 Share Posted May 13, 2020 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. Link to comment Share on other sites More sharing options...
Bo1953 Posted May 14, 2020 #17 Share Posted May 14, 2020 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 Link to comment Share on other sites More sharing options...
ipeeinthepool Posted May 14, 2020 #18 Share Posted May 14, 2020 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? 1 Link to comment Share on other sites More sharing options...
Bo1953 Posted May 14, 2020 #19 Share Posted May 14, 2020 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 Link to comment Share on other sites More sharing options...
ipeeinthepool Posted May 14, 2020 #20 Share Posted May 14, 2020 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. Link to comment Share on other sites More sharing options...
Doubt It Posted May 14, 2020 #21 Share Posted May 14, 2020 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. 1 Link to comment Share on other sites More sharing options...
Bo1953 Posted May 14, 2020 #22 Share Posted May 14, 2020 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 1 Link to comment Share on other sites More sharing options...
Rare hcat Posted May 14, 2020 #23 Share Posted May 14, 2020 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! Link to comment Share on other sites More sharing options...
TeeRick Posted May 14, 2020 #24 Share Posted May 14, 2020 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! 2 Link to comment Share on other sites More sharing options...
TeeRick Posted May 14, 2020 #25 Share Posted May 14, 2020 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. 1 Link to comment Share on other sites More sharing options...
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