Top Headlines

UPDATE: Cunard Line and P&O Cruises' managing directors to leave - report

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 June 2013 04 June 2013

The report has now been confirmed by the Carnival group.

Managing directors of P&O Cruises and Cunard Line are to leave at the beginning of September and a new organisation structure will take effect after that, Travel weekly reports in a newsflash emailed to Cruise Business in the UK.

P&O Cruises' Carol Marlow and Cunard Line's Peter Shanks would not be replaced. Instead, each of the Carnival UK brands would have a marketing director, but a new insight director would be appointed to oversee both brands. The new directors would report to Gerard Tempest who was appointed as chief commercial officer recently. David Dingle, chief executive officer of Carnival UK, would assume the same role in P&O Cruises and Cunard Line as well, the report said.

Cruise Business Online has not been able to obtain a comment from Carnival UK as yet.

Headquarters of both Cunard Line and P&O Cruises are in Carnival House in Southampton, England.

Tallink raises NOK900 million in private placement of five year notes

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 June 2013 04 June 2013

Tallink Grupp, the Estonian cruise ferry company, has completed a private placement of a NOK 900 million (€118 million) of senior unsecured notes. The maturity date of the notes is 18 October 2018 and they they carry a floating rate coupon of three month NIBOR (Norwegian Inter-Bank Offered Rate) +5%

Settlement date of the offering is estimated to be on 18th of June 2013. The proceeds of the issue will be used for the refinancing and strengthening of AS Tallink Grupp financial position.The accompanying currency risk will be hedged with a cross currency swap, the company said in a statement.

The company will seek listing of the notes on the Oslo Stock Exchange. Oslo is a major market for debt and equity issues by shipping and offshore companies, with both domestic and international investors on the market. DFDS, the Copenhagen based ferry company, has issued dent on the Oslo market in the recent past.

RCCL orders third Quantum class newbuilding from Meyer

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 30 May 2013 30 May 2013

Royal Caribbean Cruises Ltd. (RCCL) announced today that it has signed a contract with the Meyer Werft shipyard to construct a third Quantum-class cruise ship for delivery in mid-2016. The price and terms of the new ship are similar to the price and terms of the first two Quantum-class ships and the contract is subject to financing conditions.

The company recently unveiled details of this new class of ship and was gratified by the public response to the design innovations. It also said that the new design included an advantageous configuration which includes a greater proportion of higher priced staterooms and that it achieves some of the greatest energy efficiencies at sea.

“We are creating a compelling experience for vacationers with innovative design, winning service, and appealing destinations around the world,” said Richard D. Fain, chairman and chief executive officer of RCCL. Brian J. Rice, vice chairman added, "This order follows our stated goals of moderate growth, driving improved returns and leading to an investment grade rating."

“We are encouraged by the very positive response we received from travel agents and consumers when we first announced some of the unprecedented offerings on Quantum Class last month,” said Adam Goldstein, president and chief executive officer of Royal Caribbean International, the contemporary market unit of the RCCL group that will operate the ship.

The yet-unnamed Quantum-class vessel will join the Royal Caribbean International fleet, alongside Quantum of the Seas, which will make its maiden voyage in 2014, and Anthem of the Seas, scheduled to debut in 2015."

Including today's contract and existing ship orders, projected capital expenditures for 2013, 2014, 2015 and 2016 are $700 million, $1.2 billion, $1.2 billion and $2.1 billion, respectively. Including Quantum III, the company's capacity growth rate from 2012 to 2017 will be approximately 4% per annum.

Norwegian Cruise Line Holding refinances costly debt with lower cost options

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 30 May 2013 30 May 2013

Norwegian Cruise Line Holding, the listed parent company of Norwegian Cruise Lin e and NCL America, has announced the refinancing of certain of its secured credit facilities.

In addition, the Company has received commitments to refinance certain of its other secured credit facilities. No material incremental debt will result from these transactions. Once completed, the transactions mean that the company has replaced higher cost debt with lower cost options.

“The first transaction, totaling $1.3 billion, consists of a $675 million term loan and a $625 million non-amortizing revolving credit facility. This new facility matures in 2018 and refinanced existing credit facilities which had maturities beginning in 2015 and were secured by Norwegian Star, Spirit, Sun, Dawn, Pearl and Gem,” the company said in a statement.

The facility bears interest at LIBOR (London Inter-Bank Offered Rate) plus an applicable margin of between 2.25% and 1.50% based upon the company's leverage ratio.

In connection with this transaction, the company has issued a notice of redemption for the remaining $228 million outstanding of its $350 million 9.5% Senior Unsecured Notes due 2018 with a redemption date of June 28, 2013.

The second transaction, for which the Company has received commitments, will refinance facilities secured by Norwegian Jewel, Jade and Pride of America by amending the credit agreements to reduce the applicable margins and enhance certain terms and conditions. This transaction is subject to customary closing conditions and is expected to close in the second quarter of 2013.

"These transactions, coupled with our recent initial public offering and unsecured notes offering, reflect the optimization of our capital structure and positions the company for the future," said Kevin Sheehan, President and Chief Executive Officer of Norwegian Cruise Line. "We have now replaced all of our higher rate debt with facilities with more favorable rates and terms and enhanced our maturity profile to better match the increased cash flow generation that accompany our upcoming fleet additions."

Royal Caribbean quantifies financial impact of the Grandeur of the Seas fire – cancels more sailings

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 29 May 2013 29 May 2013

Royal Caribbean Cruises Ltd. today quantified the financial impact of the Grandeur of the Seas fire.

On May 27, 2013, Royal Caribbean Cruises Ltd.'s vessel Grandeur of the Seas experienced a fire in an industrial area on the aft of the ship. The company has taken the vessel out of service and expects that it will take approximately six weeks to complete the repair efforts. The company estimates that the direct financial impact of this event, net of insurance, is a reduction of $0.10 per share. "The extent of the financial impact was relatively high because the affected sailings were during the premium summer season," said Jason Liberty, senior vice president and chief financial officer. The ship is expected to return to service for its July 12, 2013 sailing date.

"We are gratified that no one was hurt and that the safety and comfort systems performed exactly as designed," said Adam Goldstein, president and chief executive officer of Royal Caribbean International. "I extend my appreciation to our crew who performed so well, as well as to our guests who have been cooperative, understanding and highly complimentary of the shipboard team throughout," Goldstein continued.