NCL pulls bond offering because of price

[smeyer418]

NCL withdrew its planned bond issue last week because of pricing issues, not because of cruise market trends or NCL's business performance, Colin Veitch tells Fairplay...


They still couldn't sell them except for a deep discount(and remember I love NCL)

[Aloha]

Smeyer418,

What bond issue?

Shelly

[img]http://escati.linkopp.net/cgi-bin/countdown.cgi?trgb=000000&srgb=00ff00&prgb=CD20CD&cdt=2005;02;13;20;0;00&timezone=GMT-1000[/img]
02/13/05 Pride of Aloha

One Open Booking with Pricess
(TBA)

Norweigan Wind 03/03
Norweigan Star 10/03
Coral Princess 04/04

[smeyer418]

NCL and Star were trying to float $350-450 million(US) in bonds for projects...
NCL cancels bond issue
12/5/2004
Star Cruises Ltd. unit NCL Corp. has withdrawn plans to offer up to US$450m in senior 10-year notes due to unfavorable market conditions, Dow Jones in Hong Kong reports.
NCL proposed issuing between $350m and $450m in bonds to institutional buyers in the US, which it had marketed in a roadshow between April 27 and May 5. J.P. Morgan served as the sole book{sic}running manager.

Star said NCL will consider other available financing and refinancing alternatives.

from Cruise community

I assume "book running" was suposed to bond issue

[tef43]

"Book-running" refers to the lead, or managing, underwriter in the syndicate of brokerage firms that bring a bond (or equity) issue to market.

"Unfavorable market conditions" is a euphemism for "We put lipstick on this pig and the suckers still wouldn't buy it."

[B]Tom <--- Curmudgeon of the Seas[/B]
[img]http://img64.photobucket.com/albums/v196/tef43/almamater.jpg[/img]
Eleven cruises so far. Up next:
Shhhh, it's a surprise!
[img]http://escati.linkopp.net/cgi-bin/countdown.cgi?trgb=000000&srgb=00ff00&prgb=e9967a&cdt=2004;10;9;7;10;00&timezone=GMT-0500[/img]
And then:
Carnival Spirit 12/10/05 Mexican Riviera
[img]http://escati.linkopp.net/cgi-bin/countdown.cgi?trgb=000000&srgb=00ff00&prgb=00bfff&cdt=2005;12;10;16;00;00&timezone=GMT-0800[/img]
Perhaps something else as well. Watch this space.

[I]Dance like it hurts, love like you need money, and work when somebody's watching.[/I]

[gardencat]

Tef43
Thanks for your very imaginative definition of " unfavourable market conditions" I sure got a vivid visual impression from that one!

Is the feeling here that the terms of the bond offer were not appealing or that the underlying viability of the company made investors uncomfortable?

[tef43]

I'm thinking that this offering was not attractive to the institutional investors that it was being pitched to, at least not at the interest rate that Star/NCL was willing to pay.

The last thing the cruise line needs, given the recent Norway and Pride of America debacles, is to have to float an issue at junk bond rates. Not good for business, definitely not good for image.

[B]Tom <--- Curmudgeon of the Seas[/B]
[img]http://img64.photobucket.com/albums/v196/tef43/almamater.jpg[/img]
Eleven cruises so far. Up next:
Shhhh, it's a surprise!
[img]http://escati.linkopp.net/cgi-bin/countdown.cgi?trgb=000000&srgb=00ff00&prgb=e9967a&cdt=2004;10;9;7;10;00&timezone=GMT-0500[/img]
And then:
Carnival Spirit 12/10/05 Mexican Riviera
[img]http://escati.linkopp.net/cgi-bin/countdown.cgi?trgb=000000&srgb=00ff00&prgb=00bfff&cdt=2005;12;10;16;00;00&timezone=GMT-0800[/img]
Perhaps something else as well. Watch this space.

[I]Dance like it hurts, love like you need money, and work when somebody's watching.[/I]