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Saga, lenders agree to relax loan covenants

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 02 April 2020 02 April 2020

Saga plc, the UK based listed financial services to cruise shipping group, and its lenders have agreed to relax certain loan covenants in the wake of the coronavirus crisis, the company said in a statement.

The net debt to EBITDA (excluding Cruise debt and EBITDA) covenant within the Term Loan and RCF (revolving credit facility) was increase to 4.75x from 3.5x for reporting periods from 30 July 2020 to 30 April 2021, and to 4.25x at 30 July 2021.

The company booked a net loss of £300.9 million on revenues of £797.3 million in 12 months to January 2020 as an impairment charge of £383.0 million hurt the bottom line.

A year earlier, the loss had been £162.2 million on revenues of  £841.5 million, with an impairment charge of £310.0 million affecting the bottom line.

“In a year of change, Saga has made significant operational progress and strengthened the management team to ensure the business is positioned to deliver for our customers and members and for investors. Our Insurance and Cruise businesses made good progress against the priorities we set out in April and we have moved to significantly strengthen our financial position, reducing debt and operating expenses and improving cash flow,” CEO Euan Sutherland said in a statement.

Carnival Corporation prices note, share offers, adjusts volumes

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 02 April 2020 02 April 2020

Carnival Corporation, the Panama domiciled and US listed holding company in the Carnival Corporation & plc group, has priced private placements of notes and shares unveiled on 31 March and adjusted volumes of two of the three offerings, the company said in a statement.

The first priority senior secured notes offering unveiled on 31 March was increased to $4 billion from $3 billion. The notes will carry a coupon of 11.50% and they will mature on 1 April 2023.

Senior convertible notes placement of $1.75 billion carries a coupon of 5.75%, the company said, adding that initial purchasers of the notes have an option to purchase a further $262.5 million worth of the notes. This option will close on 18 April.

Unless converted into common stock of Carnival Corporation, the convertible notes will mature on 1 April 2023. Their can initially be converted to common stock of the company at a rate of $1,000 worth of notes to 100 shares, giving a conversion price of $10.00 per share.

Finally, the company reduced an offering of common stock to $500 million from $1.25 planned earlier. The shares are priced at $8.00 each. Underwriters of the issue have an option to buy a further 9.375 million share a the same price. The option will run until 1 May.

 

 

 

Genting Hong Kong expects 2020 operating loss

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 01 April 2020 01 April 2020

Genting Hong Kong, which operates three cruise brands and has the MV Werften shipbuilding group in Germany, expects a full year operating loss on the back of the coronavirus outbreak.

In 2019, the group’s operating loss amounted to $96.2 million, a 32% reduction on the previous year.

Life is starting to return to normal in China, which is an encouraging sign albeit slow improvement in consumer sentiment. “Genting Dream will recommence operation when Singapore authority reopens its cruise terminal.,” the company said in a statement.

“In the interim, the Company will continue to evaluate alternative deployment plans for World Dream while the Star Cruises fleet has suspended operations until the situation in the region improves.”

The company has decided to suspend operations in all three shipyards of MV Werften in Wismar, Rostock and Stralsund, Germany for approximately four weeks commencing from 21 March.

“The magnitude of the impact on the Group’s performance is difficult to quantify as the COVID-19 outbreak continues to spread globally. The Group will continue to monitor its business closely during this temporary disruption and adjust its plans in the best interest of the Group," Genting Hong Kong said.

 

 

 

 

 

 

 

 

Higher net yields drove Genting Hong Kong cruise EBITDA higher in 2019

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 01 April 2020 01 April 2020

Genting Hong Kong, the listed parent company of Dream Cruise, Star Cruise and Crystal Cruises plus Mv Werften, doubled its EBITDA n 2019 on stronger net yields and occupancy ratios, the company said in a statement.

Cruise EBITDA rose to $189.8 million in 2019 from $152.4 million in 2018 as net yield per passenger and day rose to $202.4 from $189.0. This was the main driver behind the improvement.

Net cruise costs, including fuel, rose to $166.9 from $162.1

“Overall occupancy grew by 1.9% to 93.3% in 2019 from 91.4% in 2018 with improvements in Gross Yield and Net Yield at 8.8% and 7.1% respectively,” Genting Hong Kong said

Shipyard EBITDA posted a lower loss of $23.3 million in 2019 compared to US$59.6 million in 2018 as a result of higher utilisation of the shipyard.

The group’s cruise segment recorded a 3% increase in revenue to $1,384 million despite a reduction in capacity day of 6%. Occupancy grew by 2% to 93% in 2019 from 91% in 2018 with improvements in both Gross Yield and Net Yield at 9% and 7% respectively.

Construction of Crystal Endeavor and Global Dream achieved 68% and 51% progressive completion respectively as at the end of 2019.

Group EBITDA was $142.5 million, doubled that of $72.3 million in 2018, mainly driven by a combination of improved cruise revenues and higher utilisation of the shipyard.

Group operating loss reduced by 32% to $96.2 million with cruise segment at breakeven. Net loss was 26% lower compared to 2018 at US$158.6 million, the company said.