Baked Alaska Posted October 13, 2020 Report Share Posted October 13, 2020 https://www.marketwatch.com/story/royal-caribbeans-stock-drops-after-offering-of-500-million-in-stock-and-500-million-in-convertible-debt-2020-10-13?fbclid=IwAR3WRG-BNGpUQK3qec__ae7367Xz8_etnyJN74GZatcL_iYJKckDk0JEDRw For "general corporate purposes." Hmmmmmm. Shoring it up? YOLO and JimnKathy 2 Quote Link to comment Share on other sites More sharing options...
JimnKathy Posted October 13, 2020 Report Share Posted October 13, 2020 Like all the other cruise lines, RCL is raising cash via both the equity and debt markets to weather the COVID storm. For existing shareholders, it creates a dilutive effect which explains the pullback in the stock price today. I also noted the news that RCL is issuing $500 million in a private convertible debt offering. Baked Alaska and YOLO 2 Quote Link to comment Share on other sites More sharing options...
Baked Alaska Posted October 13, 2020 Author Report Share Posted October 13, 2020 Yep, dilution and debt. JimnKathy 1 Quote Link to comment Share on other sites More sharing options...
YOLO Posted October 14, 2020 Report Share Posted October 14, 2020 The GOOD: Now may be the time to buy... The BAD: My stock went down... The UGLY: We are still not cruising... Mike.s, RWDW1204 and Tanner 3 Quote Link to comment Share on other sites More sharing options...
Oliver Posted October 14, 2020 Report Share Posted October 14, 2020 Yeah and what really sucks as that Royal (like most other cruise lines) probably can’t sell older ships like the Empress or the Majesty because most lines aren’t in a position to buy either. I know Carnival was successful is selling two Holland America ships but that was the exception and not the norm. Quote Link to comment Share on other sites More sharing options...
twangster Posted October 14, 2020 Report Share Posted October 14, 2020 Some of those older ships might be collateral for some of the debt they've acquired. Once Odyssey is on the books they can shift some of that debt and use Odyssey as collateral. Using Odyssey to secure debt is something they said they plan to do once she is acquired but they never linked that to the older ships so we'll see what they do if these ships still aren't sailing in 6 months. Quote Link to comment Share on other sites More sharing options...
Greg787 Posted October 14, 2020 Report Share Posted October 14, 2020 8 hours ago, Oliver said: Yeah and what really sucks as that Royal (like most other cruise lines) probably can’t sell older ships like the Empress or the Majesty because most lines aren’t in a position to buy either. I know Carnival was successful is selling two Holland America ships but that was the exception and not the norm. Carnival Corp was also successful is selling some old P&O and Princess vessels. I think Royal would rather keep their assets close at hand, as they're all paid off by now. They just have to keep costs down as much as possible on Majesty and Empress, which is why they're warm laid-up in Greece. So long as daily running costs are down, it's really no trouble for them to keep them. NCL is sorta doing the same thing. Quote Link to comment Share on other sites More sharing options...
cruisellama Posted October 14, 2020 Report Share Posted October 14, 2020 Are we going to reach a salvage saturation anyway? Too many ships turned over for salvage depressing value? Not necessarily a good time for a new company to purchase a ship and sit on it until the gov'ts deem it safe to cruise. Quote Link to comment Share on other sites More sharing options...
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