Havila Voyages receives two new coastal cruise ships

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 02 August 2023 02 August 2023

On Tuesday afternoon, the Norwegian flag and the shipping company flag of Havila Voyages were raised on the coastal cruise ships Havila Polaris and Havila Pollux, which are located at the Tersan shipyard outside Yalova in Turkey.

“A milestone for the shipping company,” says CEO Bent Martini. “We have now reached our goal following a process that required a lot of time, resources, and perseverance. It has demanded a lot of patience from the Norwegian authorities with whom we have an agreement to operate, our customers, coastal communities, our partners, and all employees."

"We remained confident we would reach this moment, even though we have encountered new challenges at every turn. Now we finally possess our own beautiful and state-of-the-art coastal route ships with spacious cabins and a high level of comfort for everyone on board.”

Osman Nurettin Paksu, the Chairman of the Board of Tersan Shipyard, was also present at the ceremonies. "It is a fantastic day for us celebrating the deliveries of the beautiful coastal passenger ships to Havila Voyages. Despite challenges for both us and Havila Voyages during the construction process of these impressive ships, we are very happy today to have delivered four marvelous vessels. These are the most modern and environmentally friendly ships on the Norwegian coastal route, and we are proud that these four sister ships carry the name of Tersan Shipyard along the beautiful Norwegian coast. We also thank Havila Voyages and its cooperative representatives for their support and efforts who made these deliveries possible, it has been a pleasure working with them." says Paksu. “It is gratifying to hear about the positive feedback Havila Voyages receives from passengers traveling along the historic route with Havila Capella and Havila Castor. With four magnificent ships in operation, even more people will have the opportunity to experience these ships in their fantastic surroundings.”

In recent years, many employees of Havila Voyages have been involved in and contributed to the construction process in Turkey, and Martini emphasizes the importance of this.

"We want to thank Tersan Shipyard for their excellent cooperation and great understanding of our challenges over the last few years. They have built four fantastic ships, and without them, as well as other suppliers and partners, we would not be standing here today," says Martini.

"In addition, we’ve had our own employees down here in Turkey throughout the entire process. Having our own people close by has been absolutely crucial for us, and I thank each and every one of them for their dedication and hard work."

Busy days ahead

Havila Polaris is scheduled to start operations from Bergen on August 17th and will be the first to leave the Tersan Shipyard. Not long after, Havila Polaris is planned to follow the same route before she starts operating from Bergen on August 23rd.

"In the coming days, our crews will move on board, as we begin to get the necessary equipment customs cleared before the final checks. Then Havila Polaris will depart and head towards Bergen. Depending on the weather conditions we encounter on our way home, it will take 10 to 12 days to bring the ships back to Norway. That means long, busy days ahead to prepare the ships and finish the final touches before we can welcome the first guests on board for the maiden voyages on Havila Polaris and Havila Pollux," says Martini.

"The crew of Havila Pollux will assist on board Havila Polaris when they arrive in Bergen, and together with our onshore team, will work to ensure a successful launch. It will be a joint effort that I look forward to. I believe the days in Bergen will also strengthen us as one team, no matter where in the company one works. It is important for us to stand united, as we have done all along, and we are all eagerly looking forward to welcoming our first guests on board."

Ownership of all ships

After Havila Voyages received the required licenses earlier this year to finance its coastal fleet and release the security the original financing partner had in the ships; they have been working hard to find the right financing partner for the shipping company.

"The four coastal route ships represent significant value, and we wanted to find a financing partner that would give us full ownership of our ships. We now own all our ships ourselves, and with that, we have succeeded in our goal in the refinancing process," says Martini.

Each Havila Voyage ships is valued at approximately 150 million euros, and the shipping company has financed the fleet by raising 305 million euros from the investment firm HPS Investment Partners LLC. Additionally, the largest owners and investors of the shipping company have raised 65 million euros in additional equity, and Havila Holding AS has contributed a loan of 20 million euros.

"We are satisfied with the solutions we have reached, and they provide us with the necessary flexibility and leeway we need to deliver as expected with our mission along the Norwegian coast," explains Martini.

Positive feedback

Havila Voyages’ two existing ships on the coastal route, Havila Capella and Havila Castor, have received positive feedback from their passengers. The company uses the Net Promoter Score (NPS) scale to measure customer satisfaction and is currently scoring nearly 80.

"These are very good numbers, as an NPS score above 70 is considered world-class. It shows that we are delivering a product that our guests are satisfied with. The positive feedback relates to good service, comfort, and a unique food concept that is well-liked. At the same time, we’ve also received valuable feedback that will help us improve, so that future guests have an even better experience," says Martini.

State-of-the-art ships - built for the future

Like their sister ships, Havila Polaris and Havila Pollux have energy-efficient hull designs created to handle the varied conditions along the Norwegian coast. The ships are equipped with a battery pack of 6.1 megawatt-hours (MWh), allowing them to operate emission-free for up to 4 hours. This means they can visit the UNESCO World Heritage area of Geirangerfjorden silently and emission-free, three years before the authorities' requirement for emission-free ferries and cruise ships in World Heritage fjords comes into effect.

The ships' propulsion is a hybrid solution, with a combination of the 86-ton battery packs and liquefied natural gas (LNG) providing the power. The battery packs can be charged while the ships are docked, using clean Norwegian power. This reduces CO2 emissions by up to 35% and local emissions (NOx and SOx) by 90% compared to equivalent ships running on traditional fossil fuels. This makes Havila Voyage’ ships the most environmentally friendly ships to have ever operated the historic coastal route between Bergen and Kirkenes.

"For us, it is important to prove our commitment to climate, environment, and sustainability. This is not just a marketing stunt or empty words. From the very first day Havila Capella entered service, we have exceeded the requirements set out in our contract with the Ministry of Transport," explains Martini.

The ships are also designed, built, and prepared for emission-free fuel alternatives such as hydrogen and ammonia. With current technology, a gradual addition of biogas will further reduce CO2 emissions.

"We have the capability to operate in a carbon-neutral way today by using biogas as fuel in combination with the battery packs. It's a matter of access and cost, and now that we have finally completed a complicated refinancing, we can focus on finding a solution for transitioning to biogas," says Martini.

In addition to reduced emissions, some of the ships' features include heat recovery from sea and cooling water to warm up the ships and the water on board, as well as a food concept that includes ingredients from locally sourced producers. The onboard menu changes during the voyage to reflect the regions the coastal route ships sail through.

"We had an ambitious goal to reduce food waste to only 75 grams per person per day on board. With four ships in operation, that means a reduction of more than 60 tons of food waste per year. In 2022, we achieved 71 grams of food waste on Havila Capella and Havila Castor, which is a fantastic achievement by everyone involved in developing, producing, and serving our guests' food. We don't have a buffet, and we believe that our food concept is the way to go to make the dining experience on board flavorful, nutritious, and above all, sustainable, economically, and environmentally," concludes Martini.

Carnival Corporation & plc announces anticipated debt pre-payment of $1.2B and refinancing transaction

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 02 August 2023 02 August 2023

Carnival Corporation & plc announced on Monday that Carnival Corporation intends to commence the marketing of a new senior secured first lien term loan B facility with an original principal amount of $1.0 billion, expected to mature in 2027. In conjunction with the New First Lien Term Loan, and subject to market and other conditions, the Company may raise $500 million of other secured debt maturing in 2029 (together with the New First Lien Term Loan, the "Refinancing Transactions"). The Company intends to use the proceeds from the Refinancing Transactions to repay a portion of the borrowings under the Company's existing first-priority senior secured term loan facility maturing in 2025.

After the closing of the Refinancing Transactions, the Company intends to redeem all of the Company's 10.500% second-priority senior secured notes due 2026 and 10.125% second-priority senior secured notes due 2026 (collectively, the "2026 Notes"), saving over $120 million in interest expense on an annualized basis. The $1.2 billion of redemptions will be conditioned on the closing of the Refinancing Transactions. The Company expects to use cash on hand to finance the redemptions. This press release does not constitute a notice of redemption with respect to the 2026 Notes.

The Company's Chief Financial Officer David Bernstein commented: "Given the confidence we have in our business and its cash flow generation, we plan to retire $1.2 billion of our highest cost debt. In connection with this retirement, we plan to extend some of the lowest cost public debt in our portfolio. This is yet another step forward in our deleveraging journey, building on the $1.4 billion we already early retired this year. With this debt repayment, we now expect our year end debt balance to be less than $32.0 billion, an improvement over the November 30, 2023 debt balance of less than $33.0 billion provided in our June guidance."

The first American Cruise Lines' Coastal Cat passes sea trials

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 01 August 2023 01 August 2023

American Eagle, the first American Cruise Lines’ Coastal Cat, has passed sea trials. American Cruise Lines accepted delivery of the 100-passenger small ship from Chesapeake Shipbuilding on-time as scheduled. American Eagle is the 1st of 12 new Coastal Cats American Cruise Lines is planning to build at Chesapeake Shipbuilding. The next four ships are already under construction for delivery over the next year. The new boat is the first in its class and the namesake of American Cruise Lines’ first vessel in 1972.

American Eagle is already on its way to Massachusetts, where it will embark on its first passenger cruise. The new ship will sail a slate of 100% U.S. itineraries along the East Coast which will blend the luxury of river cruising with the access and adventure of expedition cruising. American Eagle’s first cruise is scheduled to depart August 14th, 2023, following the Line’s popular 8-Day Cape Codder itinerary, round trip from Boston, MA.

“American Eagle embodies our continued commitment to building new small ships to explore America’s rivers and coasts,” said Charles B. Robertson, President & CEO of American Cruise Lines. “It is the flagship in American Cruise Lines new series of small Coastal Cats, which are unlike anything else available in the U.S. market. American Eagle and her sister ships will change the landscape of possibilities for small ship adventures around the U.S.A.”

Introduced just a few months after American Serenade, the company’s 6th new modern riverboat, American Eagle is a testament to the Line’s market leadership. American’s small ship fleet has continued to expand year after year with ground-breaking small ship designs and unprecedented accommodations for small ships. The company plans to introduce the 2nd new Coastal Cat in the series, American Glory, in November 2023.

Accommodating just 100 guests, American Eagle features 4 decks and showcases a new catamaran bow. The new Coastal Cat offers elegant interior design and private balcony accommodations, including spacious Single and Double-Occupancy Staterooms as well as Suites. American Eagle also offers a beautiful top deck for amazing views, comfortable lounges both inside and out, a main restaurant, casual café, and fitness center.

MSC Cruises' first title sponsorship with the Formula 1

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 31 July 2023 31 July 2023

MSC Cruises and Formula 1 reached a new milestone together over the weekend, celebrating the first Grand Prix with MSC Cruises as title sponsor.

The FORMULA 1 MSC CRUISES BELGIAN GRAND PRIX 2023, one of the most historic and prominent races on the F1 calendar, was held at the iconic Spa-Francorchamps Circuit in Belgium from 28 to 30 July 2023. As the race’s title sponsor and Global Partner of Formula 1, MSC Cruises, one of the world’s largest and fastest growing cruise brands, brought the line’s global reach and passion for excellence to this thrilling event, enhancing the experience for fans around the world.

Motorsports enthusiasts and MSC Cruises guests alike witnessed the merging of two world-class brands - each distinguished for their commitment to providing unforgettable experiences and pushing boundaries. As title partner, MSC Cruises had greater track branding visibility, prominently featuring its brand on the start-finish line amongst other key locations around the undulating and fast track.

Furthermore, the winning Driver and Constructor trophies have been co-designed by MSC Cruises to be unique for the brand and this event, with Gianni Onorato, CEO of MSC Cruises, who played an integral part of the podium ceremony. He commented, “Being the title sponsor in Belgium is the next milestone in our partnership with Formula 1. An MSC Cruises trophy was presented during the Formula 1 podium ceremony; an incredible moment celebrating the success of the drivers and recognising the teamwork that goes into delivering winning results. It was a real honour for me to participate in this special moment on behalf of MSC Cruises and present the winners with the trophy.”

This collaboration further strengthens the partnership that has already achieved strong results for both brands and future title sponsorships will be revealed at selected Formula 1 Grands Prix during the 2024 World championship season. MSC Cruises is the Official Cruise Partner of Formula 1 through to the end of the 2026 FIA Formula 1 World Championship.

Other upcoming collaborations

As part of the global partnership, MSC Cruises will position ships alongside races at select Grand Prix weekends, to offer a unique hospitality experience from the ship to the racetrack. The first of these event weekends will take place in November in Abu Dhabi, for the final race of the 2023 season with more races to come in 2024. MSC Virtuosa will spend the Grand Prix™ weekend dockside, offering motorsport fans a unique combination of world-class accommodation, unparalleled hospitality, and convenient transport, including VIP packages to ensure that the race weekend is a truly memorable experience. This offer will be extended to other destinations, with other ships, from the start of the 2024 season.