SpeedNoodles Posted May 13, 2020 Report Share Posted May 13, 2020 https://www.cruiseindustrynews.com/cruise-news/22933-royal-caribbean-announces-proposed-offering-of-3-3-billion-senior-secured-notes.html ChessE4 and YOLO 2 Quote Link to comment Share on other sites More sharing options...
YOLO Posted May 13, 2020 Report Share Posted May 13, 2020 I wonder if the notes will be broken down into small sizes and if they will be available to the public. I would be interested if it were possible... Quote Link to comment Share on other sites More sharing options...
VACruiser Posted May 13, 2020 Report Share Posted May 13, 2020 ”The company expects to use the net proceeds from the offering of the Notes to repay its $2.35 billion 364-day senior secured term loan agreement with Morgan Stanley“ When you have to borrow money to pay off previous debts that’s not a good thing. I’m not sure what it means exactly but it’s got to do with burn rates they are using to stay a going forward concern. Greg787 1 Quote Link to comment Share on other sites More sharing options...
thatguy Posted May 13, 2020 Report Share Posted May 13, 2020 It's not quite as ominous as it may seem. In a zero revenue environment they need to conserve cash as much as possible. What this is effectively doing is extending the due date on what was a one year loan at the cost of additional interest. True that from a personal finance perspective refinancing a debt to extend the due date is generally not advised. However, think of all the costs RCCL will incur when they restart operations again. (Positioning and hiring crew, positioning ships, maintenance, fuel, restocking, marketing, etc) They need to have cash available to do it and you don't want to be caught in a catch-22 where you need to start up operations to get revenue but you have no cash to do it. joshgates, ChessE4 and Greg787 3 Quote Link to comment Share on other sites More sharing options...
Dad2Cue Posted May 13, 2020 Report Share Posted May 13, 2020 Someone must be willing to buy those notes. In the current risk environment, I bet the interest rate will be high. Then the interest payments might be difficult in the transition period between now and the restart let alone the time needed for resuming operations to full capacity. I'm a "senior" and I like RCCL but I doubt I would buy those notes. However, I still would reserve a future cruise and pay the deposit. I'm just waiting for the airlines to get back so I can get to the port...on second thought, maybe I will drive to the port before my car keys are taken away. Quote Link to comment Share on other sites More sharing options...
princevaliantus Posted May 13, 2020 Report Share Posted May 13, 2020 6 hours ago, YOLO said: I wonder if the notes will be broken down into small sizes and if they will be available to the public. I would be interested if it were possible... Nope...Senior Notes are for the "big spenders", are a HIGHER RISK and have stock preference payouts over common or preferred stock payouts. YOLO 1 Quote Link to comment Share on other sites More sharing options...
livin-the-life Posted May 14, 2020 Report Share Posted May 14, 2020 rccl needs to keep cash on hand to survive the next 12 to 18 months..NCL has been chirping that they have 18 months of liquidity, the players know there will be little to no sailings in 2020, but dont want to scare investors to send stocks to a further freefall, and they want the consumer to keep putting down deposits and 90 day payments in full to keep cash flow going to pay for cancellations..the u.s. will NOT OPEN ANY PORTS IN 2020, JUST AS NO europe flights to u.s. in 2020.. the cruise lines know this already, but continue to take customers money.. Quote Link to comment Share on other sites More sharing options...
tonyfsu21 Posted May 15, 2020 Report Share Posted May 15, 2020 23 hours ago, livin-the-life said: rccl needs to keep cash on hand to survive the next 12 to 18 months..NCL has been chirping that they have 18 months of liquidity, the players know there will be little to no sailings in 2020, but dont want to scare investors to send stocks to a further freefall, and they want the consumer to keep putting down deposits and 90 day payments in full to keep cash flow going to pay for cancellations..the u.s. will NOT OPEN ANY PORTS IN 2020, JUST AS NO europe flights to u.s. in 2020.. the cruise lines know this already, but continue to take customers money.. The Ports are open for business...... Ogilthorpe and WAAAYTOOO 1 1 Quote Link to comment Share on other sites More sharing options...
princevaliantus Posted May 15, 2020 Report Share Posted May 15, 2020 1 hour ago, tonyfsu21 said: The Ports are open for business...... To put this into a CLEAR perspective: Port Everglades is open and operational. We are focused on keeping the Portfunctioning efficiently so fuel and cargo continue to be delivered as quickly as possible into the marketplace. All mariners, including all crew members from any commercial ships, or as directed by Customs and Border Protection, must stay on board their vessels. AshleyDillo 1 Quote Link to comment Share on other sites More sharing options...
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