NCL Corporation closes note offerings, to buy back more expensive debt

NCL Corporation Ltd., a subsidiary of Norwegian Cruise Line Holdings Ltd., said it has closed its previously announced private offerings of three sets of notes that it would use to buy back debt with higher rate of interest.

These comprise $1.0 billion aggregate principal amount of its 5.875% senior secured notes due 2027, $600.0 million aggregate principal amount of its 7.750% senior unsecured notes due 2029 and $435.0 million aggregate principal amount of its 2.50% exchangeable senior notes due 2027.

“The offering of the Notes closed on February 18, 2022 and the offering of the Exchangeable Notes closed on February 15, 2022. NCLC used the net proceeds from the offerings of the Notes and the Exchangeable Notes to redeem all of the outstanding 12.25% Senior Secured Notes due 2024 and 10.250% Senior Secured Notes due 2026 and intends to use the remainder of such proceeds to make principal payments on debt maturing in the short-term, including, in each case, to pay any accrued and unpaid interest thereon, as well as related premiums, fees and expenses,” the com[any said in a statement.

Lindblad sees second half recovery after near term Covid-19 hit

Lindblad Expedition Holdings, the US based and listed expedition cruise operator, said the Covid-19 pandemic has hurt its near term bookings, but the situation is much better was far as the second half of the year is concerned.

“The Company has experienced a substantial negative impact from the Covid-19 virus including elevated cancellations and softness in near-term demand,” the company said in a statement.. 

Lindblad said that compared to the same date two years ago, which was prior to the pandemic, bookings for the second half of this year are nearly 20% ahead of the bookings for the second half of 2020 and bookings for 2023 are 54% ahead of the bookings for 2021.

Other listed cruise shipping companies have also said that near term bookings have been hit by the pandemic, but the situation is better regarding the second half of the year.

“As the Company continues to ramp up operations, monthly cash usage will increase as it incurs costs in operating expeditions, prepares additional ships for return to service and spends to market and advertise upcoming expeditions and trips,” it said

A significant increase in guest payments is expected as the company receives final payments for upcoming expeditions and trips, as well as deposits for new reservations for future travel. However, Lindblad said it could not estimate the impact of the pandemic on its results.

It expanded its expedition travel offerings in September 2021 with the delivery of the National Geographic Resolution, which will allow us to further capitalize on the demand for high quality adventure travel and broaden the immersive and authentic itineraries we offer to our guests. It will be the fourth vessel in its fleet to offer capacity for cruises in the polar regions, Lindblad said.

Brodosplit to build zero-emission passenger sailing ship

Brodosplit shipyard symbolically marked the beginning of the consolidation and joining of sheets to produce sections of a zero-emission passenger ship with electric generator propulsion.

"Electric sailing ship" - the so-called three-masted schooner will be 63.50 meters long and 10 meters wide, with a height of 5.35 meters to the main deck. The hull and superstructure will be made of steel and the masts of aluminum alloy. When not under sail, the ship will be powered by two 150 kW electric motors, each fed by a system of batteries continuously charged from different sources. When it reaches a speed of 6 knots, it will require only 60 kilowatts of power, which is fairly unobtrusive for a 500 gross ton boat. The vessel will be equipped with 30 tons of batteries with a maximum capacity of 2300 kWh, but due to legal requirements, it will also have two diesel generators that will be turned on only when needed or in emergencies.

The idea of a zero-emission ship was born several years ago, and with the growth and development of the DIV Group in the field of new technologies, it has matured and can now be implemented. Work on the project started in February 2020 and was co-financed by the EU funds call " Increasing the development of new products and services arising from research and development activities - phase II ".

The project aims to research, develop and build an eco-innovation in the form of a sailing vessel for optimal 24 passengers, for which alternative propulsion technologies and energy sources have been developed based on an environmentally friendly design that aims to achieve sustainable mobility with zero emissions, supporting environmental sustainability and reducing greenhouse gas emissions and air and noise pollution.

The project leader is the DIV Group, and collaboration has been established with scientific institutions to improve interaction and knowledge and technology transfer between industry and universities and public research institutes, benefiting both companies and public sector researchers.

The Faculty of Electrical Engineering, Computer Science and Information Technology in Osijek is responsible for the development of kinetic wind energy storage systems through hydrokinetic energy conversion (water turbines and reversible propellers) and battery management systems / integrated marine energy systems (energy storage, monitoring, and control, management, ...), while the Faculty of Electrical Engineering, Mechanical Engineering and Naval Architecture in Split is working on sailing systems, sail automation (robotics), wind turbines and photovoltaic systems.

There will be two vertical wind turbines at the bow and stern that will supply the ship with electricity when it is in port and the sails are lowered. A photovoltaic solar system will be installed on the roof of the superstructure. The ship will therefore be supplied with electricity and water from completely renewable sources and will obtain all its energy without any CO2 emissions. So not only is the ship 100% "green", but it also has virtually no costs for fuel and propulsion machinery.

What distinguishes this electric sailboat from similar vessels is the fact that, according to Tomislav Debeljak's idea, the ship also charges its batteries while sailing, in a very sophisticated way. In addition to the system of wind turbines, water turbines, and solar panels, a system of ship propellers with variable pitch and a special blade geometry is used, which serves as a water turbine when sailing. This "reversible propeller" will charge high-power batteries in the lower deck. In addition, all information on board will be collected and controlled on the bridge.

This includes meteorological data so that the commander knows where the wind is most favorable, absolutely all ship and propulsion systems, power supply to the batteries, operation of the engines, solar panels, wind turbines, hot water, energy consumption... At the same time, all energy "returns" and “expenses” on board are monitored.

The vessel will belong to a class of passenger ships that can sail indefinitely and sail all the seas of the world. During the domestic tourist season, it will sail the Adriatic along the coasts of Croatia, Italy, Slovenia, Montenegro, Albania, and Greece, and out of season in the Caribbean and other tourist destinations.

Meyer Turku partner in major Finnish RDI drive

Meyer Turku, the Finnish cruise ship builder, has been selected to take part in Business Finland’s financing project for leading companies and their partner ecosystems, which aims to help companies to increase their RDI (research, development and innovation) investments in Finland, the company said in a statement. 

Meyer’s NEcOLEAP project develops carbon-neutral and sustainable technological solutions for cruise ships through an extensive partnership network. The goal is to secure a billion-order cruise ship order for Turku Shipyard.

Gaining access to Business Finland’s RDI funding was not only significant but also vital for Meyer Turku, as only innovative R&D work and continuous modernisation can guarantee the yard’s competitive position in the increasingly competitive maritime industry. 

The direct employment impact of securing a single climate-neutral ship order will be approximately 12,000 person-years, which is equivalent to approximately 9,500 jobs for the shipyard and its ecosystem of partners. The impact of the order on Meyer’s net sales is approximately one billion euros and will have a direct impact on Finnish exports.

“With the European Union’s Recovery and Resilience Facility (RRF) funding, leading companies can start significant green transition -related R&D initiatives in Finland. These initiatives have a major impact on the well-being of Finns in terms of employment and business development. Meyer Turku’s NEcOLEAP project reinforces the know-how and partner network of the Finnish maritime cluster as well as strengthens global competitiveness. We see the financing of leading companies as a viable way to build and develop Finland's future. Welcome to the leader project,” said Business Finland's leading expert,Karin Wikman.

NEcOLEAP brings together the trailblazers of the future

“The research and development topics will focus on four areas: the cruise ship itself, the shipyard’s operations, i.e. shipbuilding, and the introduction of smart technologies and the open-minded professionals of the future. In the partnership network, we will create an opportunity for thousands of Finnish experts to innovate and to be a part of something entirely new,” said Ilkka Rytkölä, project Director at Meyer Turku.

According to Executive Vice President of Meyer Turku, Tapani Pulli, the main goal of the NEcOLEAP project will be to adapt the business towards the green transition and meet the demands of climate action together with Meyer’s partner ecosystem.

“This in part also will contribute to Business Finland’s goal of raising the share of R&D from 2,5 percent  to 4 percent of the GDP,” he said.

€100 million development project

Meyer Turku’s goal is to develop a climate-neutral cruise ship concept by 2025, and to achieve carbon neutral shipbuilding by 2030.

The cost estimate of the NEcOLEAP project is approximately €100 million, of which Business Finland’s financial contribution to Meyer is €20 million and Meyer Turku’s own contribution is €30 million. Business Finland has also set aside €50 million for companies, research institutes and universities involved in the ecosystem.

Many parties have already expressed an interest to participate in the project. The NEcOLEAP project’s various research areas are well suited for university and research institute projects. Research work and the results of the project will also provide direction and guidelines for future research and product development. In addition to large companies, a large number of SMEs and startups are expected to participate in the project.

“With the NEcOLEAP research and development project, we will be able to meet our customers’ strategic sustainability goals,” Pulli continued.

An extensive cooperation network and ecosystem

“The construction of a climate-neutral cruise ship will require extensive cooperation between companies, universities, and research institutes, as well as new ways of working. In the NEcOLEAP project, we will explore new sustainable technologies that can be leveraged to develop energy and resource efficiency, automation, robotics and cybersecurity for ships and shipbuilding,” he noted

Meyer Turku has a solid existing partnership network, but with the funding received by the project, the cooperation network can be expanded to include completely new areas of development. In addition to environmentally friendly energy solutions, the project will enable exploration of circular economy solutions as well as resource efficiency of materials. The goal is to find the most inventive solutions and innovative technologies. The Meyer Turku cooperation network now includes about 1,350 partner companies, and with the project that figure is expected to grow to 1,500.

“Only in this way can we stand out in the intensifying competition of the maritime industry and maintain our leading pioneer position in the global market,” Pulli concluded.

Meyer Werft and P&O Cruises celebrate the keel laying of Arvia

The Construction of the newest member of the P&O Cruises fleet has reached another milestone as the Meyer Werft team laid the keel of the ship in a symbolic ceremony.

In the process, the shipyard's 800-ton crane placed a 570-ton block for Arvia's underwater hull onto the traditional keel-laying coins. Coins from Barbados, the ship's future winter homeport, were used. The 184,000 gross ton vessel is a sister ship of the Iona, which Meyer Werft has already delivered to the British shipping company in 2020. Thanks to their LNG propulsion system, both ships are among the greenest cruise ships worldwide.

"Today we combine tradition and innovation: shipbuilders have been celebrating the laying of keels for more than 2000 years. Meyer Werft and P&O Cruises are also companies with a long tradition and a long partnership. Together we are now laying down the keel of the second innovative ship with LNG propulsion for P&O Cruises - this is currently the most environmentally friendly fuel in shipping," said Thomas Weigend, Managing Director of Meyer Werft.

The Arvia will now be completed in the world's largest covered shipbuilding dock at Meyer Werft in the coming months and will be delivered at the end of 2022. The Arvia will make her maiden voyage to the Canary Islands and sail in the Caribbean during the following winter season.