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New Build?

RJB

By RJB,
in Oceania Cruises

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StanandJim

StanandJim

Posted
Posted

Regatta and Insignia are sixteen years old, the Nautica fourteen, so

I'm thinking that Oceania wants to keep all of their options open.

oceaniacruises.jpg

Forty years seems to be the physical and economic limit that a ship can survive, but few remain in the high end market beyond twenty-five years.

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Kevnzworld

Kevnzworld

Posted
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Regent, Oceania's sister cruiseline needs a new ship. I sailed on five Regent cruises, but discontinued sailing with them in 2010 because of the age of their ships.

As can be seen in my recent cruise history, I prefer the new ships whenever possible. I can't wait to try the Riviera in January !

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wripro

wripro

Posted
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Regent, Oceania's sister cruiseline needs a new ship. I sailed on five Regent cruises, but discontinued sailing with them in 2010 because of the age of their ships.

As can be seen in my recent cruise history, I prefer the new ships whenever possible. I can't wait to try the Riviera in January !

 

Regent is getting a new ship, the Explorer. They just cut the first steel this week. It'll be out in 2016.

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hondorner

hondorner

Posted
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Why does this thread exist? There is no creditable information presented that even hints at a new build. Why not discuss the existence of the Loch Ness Monster- more productive.

OK -- Oceania intends to secure exclusive rights to Nessie (a sweet thing, not a monster). They plan to teach Nessie to carry guests on her back for an exciting and unprecedented shore excursion. However, this will only take place if Princess Cruises, the current agents for Nessie, agree to assign the rights. Maybe.

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RJB

RJB

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Why does this thread exist? There is no creditable information presented that even hints at a new build. Why not discuss the existence of the Loch Ness Monster- more productive.

Looking to see if anyone has any creditable information. There are some of us out there that are more connected than others. I thought the whole purpose of these treads is to find out things that we do not know. :)

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hondorner

hondorner

Posted
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Looking to see if anyone has any creditable information. There are some of us out there that are more connected than others. I thought the whole purpose of these treads is to find out things that we do not know. :)

There may be some who have some possible information, but learned it confidentially and are not able to go public in consideration of the source.

 

I can state there is no new build in the immediate plans, but that's no secret. PCH has to finish Regent Explorer first, and the steel was just cut within the last week.

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kiawahdon

kiawahdon

Posted
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A fact that may negate a new build announcement anytime soon is that earlier this year Apollo Global Management, LLC filed a blank Form S-1 with the SEC.

This filing(when the blanks are filled in) would take Prestige Cruise Holdings public and greatly reduce Apollo's holdings. Theoretically it might also provide some cash to PCH's to reduce their debt for Regent's new build and maybe help facilitate a new build for Oceania. Until the offering, which is solely at Apollo's choice, I personally do not see more balance sheet debt, due to an O new build, as a positive to any public offering.

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StanandJim

StanandJim

Posted
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A fact that may negate a new build announcement anytime soon is that earlier this year Apollo Global Management, LLC filed a blank Form S-1 with the SEC.

This filing(when the blanks are filled in) would take Prestige Cruise Holdings public and greatly reduce Apollo's holdings. Theoretically it might also provide some cash to PCH's to reduce their debt for Regent's new build and maybe help facilitate a new build for Oceania. Until the offering, which is solely at Apollo's choice, I personally do not see more balance sheet debt, due to an O new build, as a positive to any public offering.

 

-and if the Government subsidized Shipyard holds the debt, would that change your opinion?

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kiawahdon

kiawahdon

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-and if the Government subsidized Shipyard holds the debt, would that change your opinion?

Typically the shipyards-thru government subsidies-offer a lower than "market" interest rate on the debt owed the shipyard. Maybe LIBOR+1 when market is 7%. This "deal" does not do anything with the debt, only the interest paid on the debt. The debt will still be on PHC's balance sheet.

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MVPinBoynton Great Review Rare

MVPinBoynton

Posted
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A fact that may negate a new build announcement anytime soon is that earlier this year Apollo Global Management, LLC filed a blank Form S-1 with the SEC.

This filing(when the blanks are filled in) would take Prestige Cruise Holdings public and greatly reduce Apollo's holdings. Theoretically it might also provide some cash to PCH's to reduce their debt for Regent's new build and maybe help facilitate a new build for Oceania. Until the offering, which is solely at Apollo's choice, I personally do not see more balance sheet debt, due to an O new build, as a positive to any public offering.

 

 

As a retired CFO, I couldn't agree with you more.

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StanandJim

StanandJim

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Typically the shipyards-thru government subsidies-offer a lower than "market" interest rate on the debt owed the shipyard. Maybe LIBOR+1 when market is 7%. This "deal" does not do anything with the debt, only the interest paid on the debt. The debt will still be on PHC's balance sheet.

 

Forgive me, but lower than market interest is something better associated with buying a new car.

 

When a Shipyard needs to keep skilled employees from scattering to the four winds between orders, particularly when the taxpayer is picking up the tab, the financing can become very, very creative.

 

-And let's remember that it takes two or three years to build a a ship, and then they have to be outfitted. Keels are being laid now for Ships which will debut in the 2018-19-20 Seasons.

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rallydave

rallydave

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Forgive me, but lower than market interest is something better associated with buying a new car.

 

When a Shipyard needs to keep skilled employees from scattering to the four winds between orders, particularly when the taxpayer is picking up the tab, the financing can become very, very creative.

 

-And let's remember that it takes two or three years to build a a ship, and then they have to be outfitted. Keels are being laid now for Ships which will debut in the 2018-19-20 Seasons.

 

Have to question your math, the Regent Explorer which began the build cycle this past week will be sailing under Regent in 18 months. Your 2 to 3 years might be accurate for some of the new monstrosities of the seas and that includes outfitting and sailing with paid passengers.

 

Even if your 2 to 3 years is correct, your last statement about debut is 4 to 7 years after keel laying and way too much time. The 4 to 7 years might be accurate for the time from conception to sailing which includes a lot of time to design, finance and other preliminary work prior to cutting the first steel piece.

 

Google is your friend as it states that the Oasis of the Seas took about 3 years from keel to sailing for Carnival and any ships for O or R would take a much shorter time ergo, the 18 months for Explorer.

 

And as Kiawahdon stated, debt is debt and a discounted price to keep shipworkers working doesn't change the premise that added debt just before an IPO is not a good thing.

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