Posted on 03/24/2021 12:22:19 PM PDT by Capt. Tom
Royal Caribbean Group today announced that it has commenced a private offering of $1.25 billion aggregate principal amount of senior unsecured notes due 2028 to be issued by the company as it continues its ongoing fundraising.
The company intends to use the proceeds from the sale of the Notes to repay principal payments on debt maturing or required to be paid in 2021 and 2022, and the remaining for general corporate purposes (including to pay fees and expenses in connection with such repayments), according to a press release.
Right now we do have the advantage of printing money, and having deadly weaponry to fend off any creditors, but Cruise Lines don't have that option.
So I wondered how a Cruise Line that has no income and burned through Billions of their own money and also Billions of borrowed money could survive, without declaring Chapt. 11 Bankruptcy, while they reorganize.
It looks like a form of a PONZI SCHEME is a way to keep on going.
from the 2 para article- Royal Caribbean Group today announced that it has commenced a private offering of $1.25 billion aggregate principal amount of senior unsecured notes due 2028 to be issued by the company as it continues its ongoing fundraising."
Tom here-How lucky do you feel? Maybe by 2028 they can borrow and/or make enough money to pay you back. -Tom
They can just raise the price of beverages a little bit. Might as well make it an even $20 for a can of Shasta.
Well, paying off old expensive debt with new cheap debt will improve cash flow to the bottom line. I don’t think it’s a ponzi scheme really just ‘refinancing’ with the risk accruing to the lenders.
I think that piracy is the answer.
Merchant raiders.
Pull up next to some Chinese ship and invite them over for the free midnight chocolate buffet.
Then, when they’ve stuffed themselves with chocolate, the spa attendants jump out and put oatmeal over their eyes.
We did it before and we can do it again.
“Haul up the skull and crossbones and make some fresh oatmeal!”
I’d like to swing across to another ship on a rope with a knife between my teeth.
“Aye! It’s a new shore excursion called Get Stabbed In Your Guts By A Yankee pirate!”
Yeah. Corporate bonds are a “ Ponzi scheme”
Boycott Royal, they are trying to force mandatory vaccines on their passengers.
Well they sort of are when you haven’t had any revenue for over a year.
LOL to your first point, probably not too far off.
On the second point I realized after I posted that there is risk to shareholders if the debt is defaulted, the lenders gain control of the company and shareholders are wiped out (presumably most of the management will still have jobs of course - little to no risk to them in fact the cash infusion helps them more than anyone). But the cruise lines should have assets e.g. cruise ships, dock rights, customer data etc that have some marketable value assuming they never do get back to sea in time to generate positive cash flow. These entities may crumble, but in time cruises will sail again. Just a question of who owns and operates the ships.
This short article is more about finances than Cruising.
It involves a leading cruise line and how they stay operational. -Tom
“unsecured notes”
Wow.
People will go on cruises again
the government just needs to get out of the way!
Wow.
Yeah there is something in the investors handbook about unsecured notes... Something about a 10 foot pole.
Carnival put the cost of their drinks program way down...about @70 for 2 people the whole cruise...the price was up to about $55 each for 2 people a day ...
The special price works out to $3.50 per person a day....The drinks program includes about 15 alcohol drinks a day, and sodas, and fancy coffee drinks etc ...
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