CCL offers another 1 Billion in common stock :(

[Mary229]

4 minutes ago, BermudaBound2014 said:

 

I tend to agree that the Costa fleet is also being carved up. They moved 3 (possibly 4) costa ships from Costa officially into Carnival and invented the "Costa by Carnival" brand. 

 

Desperate times require desperate measures. I've said all along that I can't see how CCL can come out of this looking like she did when the pandemic started. Carving up seems reasonable. It's all fine and good when you are making money, but when you are the behemoth in an industry that continues to lose money each day it's a problem. 40 Billion in debt doesn't get paid off anytime soon without pretty drastic measures.

It is a good measure.  My advice to anyone or any institution is if you need money - sell something.  It is a time tested method.  Beyond the sales price you have significantly reduced overhead.  As a selfish consumer I only hope they are able to cherry pick the veteran employees and keep them in the corporation.  It is hard to replace experience. 

[rkacruiser]

1 hour ago, Mary229 said:

 As a selfish consumer I only hope they are able to cherry pick the veteran employees and keep them in the corporation.  It is hard to replace experience. 

 

As all of the cruise lines are finding.  

 

This "news" about a corporate divestment of a part of itself is nothing more than speculation to me.  Under SEC regulations, if such were to take place, the investment community must be informed of such a major change.  CCL has not done that.  

 

My opinion:  this week a travel "expert" has stirred the pot for his own business interests.  Notoriety of him makes him "known" to others.  I (and others) have never heard of him or his business before this past week.  

[Mary229]

9 minutes ago, rkacruiser said:

 

As all of the cruise lines are finding.  

 

This "news" about a corporate divestment of a part of itself is nothing more than speculation to me.  Under SEC regulations, if such were to take place, the investment community must be informed of such a major change.  CCL has not done that.  

 

My opinion:  this week a travel "expert" has stirred the pot for his own business interests.  Notoriety of him makes him "known" to others.  I (and others) have never heard of him or his business before this past week.  

I hope you are right but I think the restructuring and de acquisition needs to be on the board.   

[BermudaBound2014]

CCL offered another 1 billion in senior notes after hours today (11/15/22). Currently down 15%.
 

Carnival (CCL): Shares fell more than 13% in extended trading after the cruise line commenced a private offering of $1 billion in convertible senior notes due in 2027. It will be used as part of Carnival’s 2024 refinancing plan. Rivals Royal Caribbean (RCL) and Norwegian Cruise Line (NCLH) fell on the news.

[Mary229]

4 minutes ago, BermudaBound2014 said:

CCL offered another 1 billion in senior notes after hours today (11/15/22). Currently down 15%.
 

Carnival (CCL): Shares fell more than 13% in extended trading after the cruise line commenced a private offering of $1 billion in convertible senior notes due in 2027. It will be used as part of Carnival’s 2024 refinancing plan. Rivals Royal Caribbean (RCL) and Norwegian Cruise Line (NCLH) fell on the news.

I may get my low cost shares just in time for the reorganization and slashing of consumer perks😉

[BermudaBound2014]

Here is a link to a more complete article. The terms are getting interesting…

 

https://finance.yahoo.com/news/carnival-corporation-plc-announces-offering-210500172.html

 

[BermudaBound2014]

Kicking the can...

 

 

With the current debt load and interest payments, even if CCL returns to 2019 load factors, there still won't be cash available to pay off the senior notes when they become due (2027). 

 

If there is a positive take away, it's that there are still companies willing to fill the loan requests of all 3 cruise lines. 

[HappyInVan]

What concerns me is the amount of budgeted capital outlay for CCL. Just for the Newbuild Capital Expenditures $4.3b (2022), $2.6b (2023). See Page 21 of the 2021 Annual Report.

 

https://www.carnivalcorp.com/static-files/fe45aec4-02e8-4aaa-9ff2-308ec21a488b

 

This adds a lot of capacity into an ongoing pandemic. Can they actually get a mortgage at less than junk bond rates?

 

[oldbluff]

1 hour ago, HappyInVan said:

What concerns me is the amount of budgeted capital outlay for CCL. Just for the Newbuild Capital Expenditures $4.3b (2022), $2.6b (2023). See Page 21 of the 2021 Annual Report.

 

https://www.carnivalcorp.com/static-files/fe45aec4-02e8-4aaa-9ff2-308ec21a488b

 

This adds a lot of capacity into an ongoing pandemic. Can they actually get a mortgage at less than junk bond rates?

 

These are probably existing build or refurb commitments that cannot be cancelled or delayed. I am confident they have tried to do both. 

[dwc13]

On 10/22/2022 at 7:45 AM, BermudaBound2014 said:

 

For sure. I would also like to see who put up the money. 

 

Isn't $2B allegedly missing from FTX?

 

Oops, too soon? 😜

[oldbluff]

8 minutes ago, dwc13 said:

 

Isn't $2B allegedly missing from FTX?

 

Oops, too soon? 😜

Never too soon. House of cards. Along with NFT’s.

[BermudaBound2014]

19 hours ago, HappyInVan said:

. Can they actually get a mortgage at less than junk bond rates?

 

 

CCL was downgraded to Junk bond status back in June of 2020:

 

https://finance.yahoo.com/news/carnival-credit-rating-cut-junk-065513617.html?fr=yhssrp_catchall

 

 

 

 

[HappyInVan]

16 hours ago, BermudaBound2014 said:

 

CCL was downgraded to Junk bond status back in June of 2020:

 

 

Loans taken out on an aircraft or ship are often directly secured against the asset. For example, aircraft leases may be secured at LIBOR+ rates. Far cheaper than a business loan (prime+) to the company .

 

https://en.wikipedia.org/wiki/Aircraft_lease

 

There is substantial legal and underwriting cost involved in this arrangement. So, only used for very large ticket items.

 

Like house mortgages, the borrower has to provide some degree of margin. It is possible that companies in distress (like CCL) may receive onerous terms. After all, there is a world wide glut of cruise ships.

 

[Mary229]

On 11/16/2022 at 2:39 PM, HappyInVan said:

pandemic. Can they actually get a mortgage at less than junk bond rates?

Of course they can.  It is often said that banks will lend to any one or any entity that another bank has already lent money to.  You get one, you get them all.  Geez banks have major positions in cryptocurrencies, what could be riskier, ummmm maybe tulip bulbs.    Banks lend, split, bundle and sell the bad debt bundled with less bad debt and teachers’ pensions and small governments throughout the world buy them.  They are still called collateralized debt obligations and investors didn’t learn anything from 2008.  Just look over the banks, endowments and pension funds who were invested in FTX.

Edited November 18, 2022 by Mary229