Moves afoot for NCL's Majesty & Dream and POH may not be off to Star afterall

[Goldryder]

It appears that NCL are 'close' to finalising the sale of 3 ships...

 

If it goes through, Pride of Aloha will go to Pullmantur for a reported $300m-$310m and Norwegian Dream/Majesty will go to Louis Lines for a reported $378m for the pair.

 

You can read the entire article here...you may need to register to read it in its entirety though.

 

http://www.lloydslist.com/ll/news/ncl-close-to-offloading-cruiseship-trio/20017522772.htm

[FIRELT5]

It appears that NCL are 'close' to finalising the sale of 3 ships...

 

If it goes through, Pride of Aloha will go to Pullmantur for a reported $300m-$310m and Norwegian Dream/Majesty will go to Louis Lines for a reported $378m for the pair.

 

You can read the entire article here...you may need to register to read it in its entirety though.

 

http://www.lloydslist.com/ll/news/ncl-close-to-offloading-cruiseship-trio/20017522772.htm

 

Happy that we booked the Majesty to Bermuda for September of this year.

I guess that we can forget about our sailing on the Majesty in 2009 to BDA.

[Goldryder]

Unlike past rumours, this information comes from an excellent source, namely Lloyds List, who know pretty much everything there is to know when it comes to world shipping. They are affiliated with the world's biggest shipping insurer & registrar, Lloyds of London.

 

The POH move to Pullmantur does not surprise me at all, should that be finalised. They are having a torrid time with Sky Wonder and her sister Pacific Star (to be named Ocean Dream) has had a lousy history too. Empress of the Seas is currently being refurbed for them and Sovereign of the Seas will be transferred in Novemebr this year. POH would certainly make an excellent fleet member for Pullmantur compared to most of their existing older fleet.

 

As for Louis Lines negotiating for Dream & Majesty, again that is no surprise. Louis are desperate to update their fleet, some of their older vessels like Serenade are already laid up and for sale. They too another ex NCL vessel into their fleet last year, Crystal which IIRC was Leeward. Dream & Majesty would suit Louis perfectly and they are in a much better condition than a majority of the Louis fleet currently.

 

So although the old chestnut of rumours about these ships being sold has happened before and come to nothing, NCL have taken a financial beating lately over the NCLA debacle, they have also made several people redundant from the Miami offices and with the introduction of Freestyle 2.0 now taking shape, the old ships just do not fit in with current plans...so rather than try and continue with them, they are selling them for the most that they can, which is sound business.

[cruizinwithkids]

I think this is interesting, but not exactly startling news.

 

The Dream is not included in any itineraries past Bermuda in the Fall of 2008.

 

The Majesty certainly doesn't fit the model of NCL ships in either age or the ability to handle freestyle. It could also be feasible that NCL sell the ship, but continue to use it for the Bermuda run in 2009. I believe that is what they did with the Crown.

 

Also the POH is not involved in any of this. It would be the Pride of Aloha, not Hawaii which has been reflagged and refurb and is now the Jade.

[Goldryder]

I think this is interesting, but not exactly startling news.

 

The Dream is not included in any itineraries past Bermuda in the Fall of 2008.

 

The Majesty certainly doesn't fit the model of NCL ships in either age or the ability to handle freestyle. It could also be feasible that NCL sell the ship, but continue to use it for the Bermuda run in 2009. I believe that is what they did with the Crown.

 

Also the POH is not involved in any of this. It would be the Pride of Aloha, not Hawaii which has been reflagged and refurb and is now the Jade.

 

I apologise, it is the Aloha (I put Aloha in the post, so just the title is incorrect) :o

[salty dingo]

As long as they don't dispose of Majesty in the next three weeks, I'm OK with the deal! 2 Weeks and 6 Days till we sail her!

[FIRELT5]

As long as they don't dispose of Majesty in the next three weeks, I'm OK with the deal! 2 Weeks and 6 Days till we sail her!

 

Can we look forward to live updates from the Majesty while at Sea ???? lol

[HLP]

While this may not be startling news as it relates to NCL,

it is certainly a new change of plans for Star. The Pride of

Aloha would have been a great addition to their fleet.

It seems Star cruises needs cash.

 

Thanks for posting this news.

 

Wow,thats one high subscription rate for loydlist.

 

HLP

[14ersco]

Slightly off subject, but go back to the Lloyd's link and look in the right hand column. Apollo is planning to file an IPO at $14 per share. More cash infusion for NCL?

[Cubechick]

Also worth noting, NCL won't be realizing any cash from the sale of the Majesty or the Dream as these two ships are owned by Star with a lease-back arrangement to NCL.

 

From NCL's financial statements:

 

"In addition, we transferred six of our ships, Norwegian Crown, Norwegian Dream, Norwegian Majesty, Norwegian Sea, Marco Polo and Norwegian Wind, to Star Cruises Limited at their existing net book values of $778.0 million along with their $403.2 million of secured indebtedness. The difference of $374.8 million reduced our intercompany debt owed to Star Cruises Limited by the same amount. After the transfer, we entered into arrangements with Star Cruises Limited to charter-in these six ships from Star Cruises Limited for periods ranging from one to six years to continue operating them under the Norwegian Cruise Line and Orient Lines brands. These charter arrangements provide us with greater flexibility in removing older ships from our fleet as new ships that are custom designed for “Freestyle Cruising” enter our fleet over time. We believe that our arrangements with Star Cruises Limited are on terms substantially the same as arms-length transactions. We currently have three ships under the charter agreements, Norwegian Majesty, Norwegian Dream and Marco Polo. In March 2008, the charter agreement for Marco Polo will expire and we no longer operate under the Orient Lines’ brand name. In November, 2008 we will return Norwegian Dream. "

 

.

[ohioNCLcruiser]

I heard Star didn't need the Aloha for a few weeks now so now I guess thats confirmed!

[Goldryder]

NORWEGIAN Cruise Line, the Miami operator that is currently undergoing a watershed transformation of sorts, appears close to consummating the sale of three of its cruiseships to smaller European brands, including the disposal of the two oldest ships in the NCL fleet.

 

The ships involved are understood to be the 1999-built Pride of Aloha, which is being withdrawn from NCL’s ill-starred US-flag cruise operation in Hawaii, and the 1992-built pair of Norwegian Dream and Norwegian Majesty.

 

Pullmantur Cruises is understood to be the purchaser involved in the Pride of Aloha transaction, at a rumoured price of $300m-$310m. The transaction was understood to be on subjects on Friday, with subjects expected to be lifted next week.

 

Cyprus’ Louis Group is believed to be pursuing the acquisition of the other two ships, in what would be the largest deal in the history of the East Mediterranean’s largest cruise operator. A specialist broker familiar with the deal put the price agreed for the Norwegian Dream and Norwegian Majesty en bloc at $378m.

 

NCLdid not return calls made by Lloyd's List on Friday.

 

US sources suggested that Louis had yet to line up the finances required to bankroll such an ambitious expansion, but was in hot pursuit of investors and bankers.

 

It is also believed that Louis’ interest in the pair, at a price seen in some quarters as “top-dollar”, caused a potential rival bid on the ships by International Shipping Partners/Clipper Cruises to die away.

 

Louis has previously affirmed intentions to renew its 13-vessel fleet with newbuildings or younger tonnage, while negotiating the sale of some of the older vessels.

 

For NCL, the putative deal comes when the company is seeking to rebound from heavy losses suffered in its US-flag operations.

 

The company now markets its brand as possessing the “youngest fleet on the planet”. Simultaneously, private equity group Apollo Global Management has ploughed $1bn into the company for a 50% stake and a board majority.

 

This investment is being seen among certain circles as a rich investor seeing the long-term upside in an “undervalued” operation. Apollo last week filed for an initial public offering of up to $417.5m in New York, with the prospectus detailing a philosophy of “contrarian” and “distress-sale” investments.

 

NCL’s Hawaii operation took root in 2003 through a special Congressional dispensation and started business with three ships, the Pride of Hawaii, Pride of Aloha and Pride of America. However, cost and, allegedly, competition caused the operation to haemorrhage cash, and it is now down to one ship.

 

NCL announced a year ago that it would withdraw the Pride of Hawaii from Hawaii, citing competition from foreign-flag ships. Last month, just days after actually removing the Pride of Hawaii, NCL disclosed plans to remove the Pride of Aloha from the islands in May.

 

NCL also announced significant redundancies in its Miami head office in March, as a direct result of the Hawaii debacle.

 

Colin Veitch, NCL chief executive, insisted to Lloyd’s List in Miami in March that the decision to pare the Hawaii business back to one ship had brought the entire operation back to viable scale, and, “for now”, the Pride of America would constitute a profitable one-ship profit centre in Hawaii.

 

NCL has decided not to invest in new ships through to 2010, when a pair of newbuildings in its ambitious F3 class would hit the water, Mr Veitch revealed. The Pride of Hawaii¸ renamed the Norwegian Jade, and the Pride of Aloha were to be moved to NCL’s European and international itineraries to serve as de facto fleet expansion in the meantime.

 

F3 is the project name for the new class under construction at Aker Yards France, the Chantiers de l’Atlantique shipyard in Saint-Nazaire. Designed to propel NCL into the “mega-class” league of its bigger rivals Carnival and Royal Caribbean, the F3 class will surpass NCL’s Jewel class as its largest vessels by over 50,000 gt.

 

Incase you had difficulty in gaining the full version from the link in first post :)

[newmexicoNita]

I think this is interesting, but not exactly startling news.

 

The Dream is not included in any itineraries past Bermuda in the Fall of 2008.

 

The Majesty certainly doesn't fit the model of NCL ships in either age or the ability to handle freestyle. It could also be feasible that NCL sell the ship, but continue to use it for the Bermuda run in 2009. I believe that is what they did with the Crown.

 

Also the POH is not involved in any of this. It would be the Pride of Aloha, not Hawaii which has been reflagged and refurb and is now the Jade.

 

I was about to say the same: I think everyone or most anyway know the Dream is going and most figure the Majesty will as well. In fact I have clients who just got off the Dream. They were told at the Meet and Greet, these two ships, not designed for freestyle were leaving.

 

Nita

[Goldryder]

If the deals go through as planned (and there is no real reason why they shouldn't) then those of you who are avid NCL fans and who come over this side of the muddy puddle to cruise, will get to see the 'old girls' in use in the Med...possibly Baltic too. Where Louis is concerned, you might even see them decline too...unless they do another Sea Diamond, of course.

[electricron]

I've read rumors in the past that Louis was interested in purchasing the Majesty. But it's the first I've read they were also interested in the Dream.

The Dream would fit perfectly in both Star's and Louis's fleets, in different ways. The Dream could be refitted into a casino ship as the Wind was, now the Superstar Aquarius, which probably has the largest casino areas of any cruise ship afloat today. Likewise, the Dream's folding smokestack makes it a natural for European (Baltic Sea and Kiel Canal) cruises which Louis could really take advantage of.

Louis interests in the Majesty has been over several years. It would have been their largest ship, not too large for visiting the small Greek islands which has been Louis bread and butter for years, that was before rumors of the larger Dream sell.

 

Including the Aloha in these sell rumors came as a surprise to me. I was pretty sure Star could have used the Aloha in Asian seas, especially in a new Chinese homeport, considering it was being transfered to Star with no debt. Pullmantur paying Star over $300 million for it is a great deal for Star. They get to keep and eat the cake at the same time. I guess Star would rather have the cash than another modern cruise ship without an existing established homeport to sail it from.

Pullmantur needs a modern flagship as well, Celebrity and Royal Caribbean hand me downs of older smaller ships expanded their berth capacity, but they were without many balconies for the European market. The Aloha will fit Pullmantur nicely. Sailing the Caribbean in winter, and the Mediterranean in summer. As a sister to Costa's Victoria, it's not too small for European seas. If the sell goes through, it'll become Pullmantur flagship.

[salty dingo]

Can we look forward to live updates from the Majesty while at Sea ???? lol

 

Sure, just not from me. I don't do the onboard internet. I may post from port though!

[Goldryder]

I've read rumors in the past that Louis was interested in purchasing the Majesty. But it's the first I've read they were also interested in the Dream.

The Dream would fit perfectly in both Star's and Louis's fleets, in different ways. The Dream could be refitted into a casino ship as the Wind was, now the Superstar Aquarius, which probably has the largest casino areas of any cruise ship afloat today. Likewise, the Dream's folding smokestack makes it a natural for European (Baltic Sea and Kiel Canal) cruises which Louis could really take advantage of.

Louis interests in the Majesty has been over several years. It would have been their largest ship, not too large for visiting the small Greek islands which has been Louis bread and butter for years, that was before rumors of the larger Dream sell.

 

Including the Aloha in these sell rumors came as a surprise to me. I was pretty sure Star could have used the Aloha in Asian seas, especially in a new Chinese homeport, considering it was being transfered to Star with no debt. Pullmantur paying Star over $300 million for it is a great deal for Star. They get to keep and eat the cake at the same time. I guess Star would rather have the cash than another modern cruise ship without an existing established homeport to sail it from.

Pullmantur needs a modern flagship as well, Celebrity and Royal Caribbean hand me downs of older smaller ships expanded their berth capacity, but they were without many balconies for the European market. The Aloha will fit Pullmantur nicely. Sailing the Caribbean in winter, and the Mediterranean in summer. As a sister to Costa's Victoria, it's not too small for European seas. If the sell goes through, it'll become Pullmantur flagship.

 

In respect to the Louis Line purchase of Majesty & Dream...it will get them off the hook in a few ways too.

 

Having those two ships, then can finally get rid of Emerald & Calypso...both will not go through SOLAS 2010 without alot of investment. Dream & Majesty will also appeal better to Thomson Cruises clientele/itineraries instead of Emerald/Calypso too....ESPECIALLY in light of the RCI/TUI joint venture in 2009. Thomson are part of TUI and having decent SOLAS 2010 compliant ships will put Louis in far better stead with the TUI management than Calypso/Emerald.

 

So Louis having Dream/Majesty will earn them major brownie points in TUI's eyes if they intend using them on Thomson itineraries...which do include Baltic/Scandinavia currently.

 

Insofar as Pullmantur is concerned, the purchase of total pups (Pacific Sky/Star) will not have done them any favours. They have RCI's Empress and will be having Sovereign in November 2008...along with those two and Zenith which is already in service....Aloha will make up a pretty good fleet as long as they are prepared to dump out the pups and the older ships like Oceanic. I would also not be at all surprised if the other RCI funded venture...Island Cruises...isn't merged into Pullmantur or Iberocruceros at some point in the future.

[AFT_LOVER]

for posting the entire news article. I got on started to read & then am told to log on to the site........... no time to.

 

Incase you had difficulty in gaining the full version from the link in first post :)

[teltrainer]

I wonder if they will sell off and cancel trips despite having the Bermuda trips listed now. It's happened with other cruise schedules and those booked offered refunds or credits.

[FIRELT5]

I wonder if they will sell off and cancel trips despite having the Bermuda trips listed now. It's happened with other cruise schedules and those booked offered refunds or credits.

 

We were thinking the same : We have Sept 2008 and October 2009 booked for Bermuda on the Majesty. Anyone want to guess on the Final departure date ??

[electricron]

We were thinking the same : We have Sept 2008 and October 2009 booked for Bermuda on the Majesty. Anyone want to guess on the Final departure date ??

 

I doubt it because the Dream is available this fall, Louis Cruise Lines could wait until next fall for the Majesty. I'm not sure they could accomodate two newer ships into their fleet that quickly.

[Goldryder]

Louis could do what Olsen did in relation to Majesty. Buy the ship and lease it back for a year to NCL so that she could conclude her itineraries before leaving the fleet in 2009. It would be a good little earner for Louis and they could certainly do with the income from a lease-back like that.

 

Olsen's got around $30k a day for Crown in her last season by leasing her back to NCL for 12 months.

[AFT_LOVER]

unless your brokerage house has over $500K on you. But when the IPO offering is over then you can buy it.

 

 

Slightly off subject, but go back to the Lloyd's link and look in the right hand column. Apollo is planning to file an IPO at $14 per share. More cash infusion for NCL?

[Sundagger]

Slightly off subject, but go back to the Lloyd's link and look in the right hand column. Apollo is planning to file an IPO at $14 per share. More cash infusion for NCL?

 

Probably not. One of Apollo's investments is about to file for Chapter 11 - Linens 'n Things, which Apollo bought for $1.3 billion and has been having huge losses. It bought Realogy - a real estate brokerage firm - last year, which was probably bad timing. Given the current financial markets, Apollo may just be having a hard time raising private investment and has to turn to public investment.

[BKBroiler]

Since NCL will be losing these three ships, and not have any coming online until 2010...what do you think the chances of Norwegian Spirit's sister-ship, SuperStar Virgo, will transfer to NCL? I think this would be a great addition to the NCL fleet...

 

Also, if you look through the old press-releases...NCL stated that they felt it was not viable for the company to invest anymore money into the Pride of Aloha/Norwegian Sky. I wonder if the format on the ship does not perform as well as they would like with Freestyle Cruising...

 

BKB