News

Saga expects Spirit of Adventure delivery within 12 months

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 02 April 2020 02 April 2020

The delivery of Spirit of Adventure, the second of two 58,250 gross ton cruise ships for Saga Cruises in the UK from Meyer Werft in Germany, is likely to be delayed but to take place within the next 12 months, parent company Saga plc said in a statement

“While there is uncertainty over the delivery date for Spirit of Adventure as a result of the COVID-19 crisis, the Group's expectation is that this will be completed within the next 12 months. This will complete the transformation of the Cruise business,” Saga said in a statement.

A delay of the delivery has been considered within planning scenarios and is not anticipated to significantly change the Group's financial position.

“Successful launch of Spirit of Discovery; financial performance in the first six months of operation wasconsistent with a full year objective of £40m of EBITDA. As at 31 January 2020, forward Cruise bookings for 2020/21 were at 80% of the full year target, ahead of internal expectations,” Saga stated.

Saga, lenders agree to relax loan covenants

Details: 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

Details: 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.