And so it begins ... the first crack .. NCL admits it might fail

Today NCL admitted it could not meet financial obligations and is trying to raise money

https://www.theglobeandmail.com/business/international-business/us-business/article-norwegian-cruise-line-flags-cash-crunch-going-concern-risks/

14 Answers

Thanks for sharing! Only time will tell if the cruise industry can really recover. There may be less money for the general public to spend in the short term but maybe in the long term it will boom. NCL may have to cut back on the number of ships (sell some of the older ones if they can find a buyer) to continue. I hope they can stay viable.

Playing "the big game" is how I pulled the plug way early. I doubt very much they'll "fail" in the conventional sense. Offering their ships and property (islands) as collateral would interest a lot of investors. The last I learned they're looking to offer 1B+ in 5 year bonds paying 12-14%...not too shabby. Don't forget, their common pays no div. So all they really need to prove is that the bookings are holding up, and apparently they are. Besides, the last thing you want to do is "sell" assets. That REALLY sends up a red flag. ALL the cruise lines stock has taken that kind of a hit, just pick one and run the price chart from a year ago to now. NCL is in good company.

Having said that, I'm of an age where I can remember a dozen American "icons" that don't exist anymore.....I don't care if the co is named NCL or XYZ...the Chinese own everything else, why not a cruise line?

https://www.barrons.com/articles/norwegian-cruise-line-aims-to-raise-1-4-billion-stock-slides-51588689119?siteid=yhoof2&yptr=yahoo

Some folks out there stand to make serious $$..For some a couple hundred million is chump change. "Guess what I did today boys?...Picked up a cruise line on the cheap!" A year ago NCL was selling for $60, today its heading for $11 on the news. its been as low as $7....And fwiw, CCL is in the same boat. Now if I was a multi=billionaire, with access to that kind of $$, I might find myself leaning back and staring at the sprinklers for awhile...How would it feel to have MY name on the stern of a mega-ship...kinds makes the usual uber-rich yacht the equivalent of a rowboat eh?

Interesting times. Still we won't know how this all shakes out til sometime into the future. All international travel in its many forms as well as entertainment be it major sports or concerts are also are in for a redefining as well. Anyone wanna guess?

Waiting and watching the goings on. I suspect the cruise lines will still exist as the market is there and contrary to what some say will continue to grow. The big question will be who owns what and what it will cost us to feed our addiction.

Looks like they got their financing, as I suspected they would...and now claim they can survive "worst case" whatever they think that is...

I guess the bond issue wasn't required. Some private investors came in for an equity stake an there will be more stock issued. Thought the original plan was to issue bonds (12ish% rate).

It was...but this deal is better for the folks putting up the $$...they get the diluted shares at a huge discount, betting that after a year or three, they'll have even more dough than some countries...they only people getting a haircut, as usual, are current bagholders....

Currently where I live, many small businesses and even some of the more traditionally large and stable companies may not make it through another 4 weeks of shutdowns. Many of my former customers have shut down. Restaurants who do not depend on take out and delivery will not survive. A billionaire owner of a cruise line will maybe take a hit, but I do feel for all the small suppliers, business owners and staff who may never recover fully from these times. We may be looking at a whole new way of cruising if cruising returns in 2021.

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