GeorgesGal Posted March 17, 2021 #1 Share Posted March 17, 2021 (edited) I've read that Oceania will, once again, be on its own, ceasing its relationship with NCLH at some time in the future. Does anyone have any idea when this might occur? Another question, for which I believe I know the answer, is how long if at all the stockholder benefit for owning NCLH will last after the break? Number three is will Oceania be issuing its own stock, or will it be privately held? Inquiring minds wants to know! Donna Edited March 17, 2021 by GeorgesGal Link to comment Share on other sites More sharing options...
cdcummings Posted March 17, 2021 #2 Share Posted March 17, 2021 (edited) If that is true, that is a remarkable development, and it would certainly trigger a Form 8-K filing with the SEC. As of now, I do not see any such filing on their investor relations site. Would you mind sharing the source of your information? Indulging in speculation, the private equity firms are undertaking a dramatic number of deals in travel and other industries right now. It would not surprise me if NCLH were to spin off Oceania in a fashion similar to RCI and Azamara. It would likely be a deal to take Oceania private for a period of years, then to restructure it through so-called value engineering, and then take it public sometime in the future. In that hypothetical case, the shareholder benefit would terminate when your shares are redeemed and the deal closes but would likely not impact discounts already applied to existing bookings. It is worth nothing that NCLH is still struggling with extraordinary cash burn; just this month, they announced offerings of over 50,000,000 additional shares to satisfy their current operating costs and future debt repayment obligations. With those extraordinary measures underway, I am sure that NCLH is looking at all "strategic" options, including spinning off one or more subsidiaries. Given the synergies and shared resources between Oceania and Regent, I would be shocked if NCLH carved out a sale of Oceania without also including Regent (but it is certainly possible). The board's fiduciary responsibilities not only make this possibility likely but, in fact, obligate them to at least consider offers to purchase assets made by third-parties in good faith. If Azamara with its three (soon to be four) ship fleet size is viable as an acquisition target (as evidenced by the transaction with Sycamore, the private equity firm), then Oceania is arguably an even more lucrative target for a potential spin-off. If I had the cash, I would do the deal myself. Sadly, I don't. :-) Taking Oceania private though a transaction of this type would have myriad benefits and drawbacks. The most obvious drawback would be the efforts to value engineer (i.e. increase prices and decrease onboard product). The benefits are more subtle: NCLH is going to have very significant financial problems for the foreseeable future, even once sailings start again. Chapter 11 is not going out of the question (as is the case for every travel operator who took on tremendous amounts of debt during the course of the Covid-19 pandemic). A transaction to take Oceania private would at least ensure their financial stability, regardless of what happens to the current parent company. All of that would be addressed by an 8-K filing which, again, does not exist at the moment. Thus, until we see that, we can only speculate. Edited March 17, 2021 by cdcummings added content on hypothetical transaction 1 Link to comment Share on other sites More sharing options...
tampadee Posted March 17, 2021 #3 Share Posted March 17, 2021 15 minutes ago, GeorgesGal said: I've read that Oceania will, once again, be on its own, ceasing its relationship with NCLH at some time in the future. Does anyone have any idea when this might occur? Another question, for which I believe I know the answer, is how long if at all the stockholder benefit for owning NCLH will last after the break? Number three is will Oceania be issuing its own stock, or will it be privately held? Inquiring minds wants to know! Donna I can't find any information about Oceania leaving its relationship with NCLH. Where did you see this? Link to comment Share on other sites More sharing options...
Jancruz Posted March 17, 2021 #4 Share Posted March 17, 2021 31 minutes ago, GeorgesGal said: I've read that Oceania will, once again, be on its own, ceasing its relationship with NCLH at some time in the future. Does anyone have any idea when this might occur? Another question, for which I believe I know the answer, is how long if at all the stockholder benefit for owning NCLH will last after the break? Number three is will Oceania be issuing its own stock, or will it be privately held? Inquiring minds wants to know! Donna Never as long as FDR is the head of the company Jancruz1 4 Link to comment Share on other sites More sharing options...
GeorgesGal Posted March 17, 2021 Author #5 Share Posted March 17, 2021 1 minute ago, Jancruz said: Never as long as FDR is the head of the company Jancruz1 Thanks for your knowledgeable input, Jan. I was hoping you'd chime in! As to where I heard this, I believe it was in an article on a Cruise Critic thread to which someone had posted a link. It was about a month or so ago. Don't know which thread, though. Link to comment Share on other sites More sharing options...
Rare LHT28 Posted March 17, 2021 #6 Share Posted March 17, 2021 Who ever took over would need VERY deep pockets I hope Jan is right Link to comment Share on other sites More sharing options...
Rare pinotlover Posted March 17, 2021 #7 Share Posted March 17, 2021 NCLH has borrowed a heap of cash, with , I’m guessing, a ton of liens on everything they own, including Oceania ships. Trying to separate and clear those liens for any sale would be difficult at best. Trust what Jancruz has said. Link to comment Share on other sites More sharing options...
Rare LHT28 Posted March 17, 2021 #8 Share Posted March 17, 2021 Maybe FDR will buy back Oceania for something to do when he retires 😃 Link to comment Share on other sites More sharing options...
Tranquility Base Posted March 18, 2021 #9 Share Posted March 18, 2021 (edited) .... Edited March 18, 2021 by Tranquility Base Link to comment Share on other sites More sharing options...
Rare ORV Posted March 18, 2021 #10 Share Posted March 18, 2021 I just can’t seem to come up with a reply that works here. 1 2 Link to comment Share on other sites More sharing options...
floridatravelersforlife Posted March 18, 2021 #11 Share Posted March 18, 2021 If the sale generated enough Billions, then the creditors would be more than happy to renegotiate the terms of debt. The new owners (whether Apollo or someone else) could provide the same or better service until they resold the business some years thereafter. Link to comment Share on other sites More sharing options...
RJB Posted March 18, 2021 #12 Share Posted March 18, 2021 22 hours ago, LHT28 said: Maybe FDR will buy back Oceania for something to do when he retires 😃 Would be great for Oceania. I would love to see it and maybe Jan would also Link to comment Share on other sites More sharing options...
GeorgesGal Posted March 18, 2021 Author #13 Share Posted March 18, 2021 1 minute ago, RJB said: Would be great for Oceania. I would love to see it and maybe Jan would also Agreed, RJB! Oceania was a better product when it didn't have to answer to a holding company which counted all the beans. I'd love to see it as a stand-alone once more. Link to comment Share on other sites More sharing options...
RJB Posted March 18, 2021 #14 Share Posted March 18, 2021 3 minutes ago, GeorgesGal said: Agreed, RJB! Oceania was a better product when it didn't have to answer to a holding company which counted all the beans. I'd love to see it as a stand-alone once more. They just need to make sure the new ships go with the deal. Cant wait to sail on them. Link to comment Share on other sites More sharing options...
Rare pinotlover Posted March 18, 2021 #15 Share Posted March 18, 2021 I seriously doubt a small company like PCH could have survived the cash flow hit of the pandemic alone. Attempting to sell assets, at assuredly depressed prices, to a corporate insider would make a lot of money for a bunch of lawyers. The bond and shareholders would be all over that. Never happens. I forget what NCL paid for all of PCH, but there was no “ B” in the number. To suggest that Oceania would Bring “ B”illions in this market is surely the laugh of the Day! 😂 Link to comment Share on other sites More sharing options...
njhorseman Posted March 18, 2021 #16 Share Posted March 18, 2021 1 hour ago, GeorgesGal said: Agreed, RJB! Oceania was a better product when it didn't have to answer to a holding company which counted all the beans. I'd love to see it as a stand-alone once more. The same person who founded Oceania is the CEO of the holding company. So his decisions about Oceania were great one day and suddenly weren't so great the next day? Long before Oceania was folded into NCLH controlling interest in Oceania had been acquired by Apollo Management, which also held controlling interest in NCL at that time...and FDR has been there all along. Link to comment Share on other sites More sharing options...
njhorseman Posted March 18, 2021 #17 Share Posted March 18, 2021 29 minutes ago, pinotlover said: I seriously doubt a small company like PCH could have survived the cash flow hit of the pandemic alone. Attempting to sell assets, at assuredly depressed prices, to a corporate insider would make a lot of money for a bunch of lawyers. The bond and shareholders would be all over that. Never happens. I forget what NCL paid for all of PCH, but there was no “ B” in the number. To suggest that Oceania would Bring “ B”illions in this market is surely the laugh of the Day! 😂 There was a "B". The value was stated as $3.025 billion in cash and stock including the acquisition of debt. Link to comment Share on other sites More sharing options...
Jancruz Posted March 18, 2021 #18 Share Posted March 18, 2021 On 3/17/2021 at 1:44 PM, LHT28 said: Maybe FDR will buy back Oceania for something to do when he retires 😃 Link to comment Share on other sites More sharing options...
Jancruz Posted March 18, 2021 #19 Share Posted March 18, 2021 (edited) I've read that Oceania will, once again, be on its own, ceasing its relationship with NCLH at some time in the future. Does anyone have any idea when this might occur? Another question, for which I believe I know the answer, is how long if at all the stockholder benefit for owning NCLH will last after the break? Number three is will Oceania be issuing its own stock, or will it be privately held? Inquiring minds wants to know! Donna Totally, unequivocally, with out question no FDR Edited March 18, 2021 by Jancruz 1 1 Link to comment Share on other sites More sharing options...
Rare pinotlover Posted March 18, 2021 #20 Share Posted March 18, 2021 Thanks Jancruz! End of discussion. 1 Link to comment Share on other sites More sharing options...
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