CCL LOOKING TO BORROW ANOTHER 600M!!

You guys sound just like my financial blogs....hehehehehe....mebbe they're in cahoots with MUSK...cruises to the moon???....you know what it COSTS to borrow this kind of $$ with NO collateral? how much has NCL actually borrowed??? THEN we can have discussions about who might buy who??/ fun ain't it??? its MORE fun later in the afternoon....trust me.....

That's what I would do if I were CEO. I'll bet there are a few bargains to be had out there.

I don't think they could afford buying NCL outright (and not without running afoul with the FTC), but they would probably be able to pick off one of their brands (Oceania or Regent). especially if NCL is in as bad of shape as I believe they are. I think they are hurting the worst of the major lines.

I admit it's all speculation. For all I know CCL may just be raising the money because they are in deeper financial trouble then they let on. Or maybe just because they can.

This would be the perfect time to snatch up another cruise line if they have their ducks in a row with the CDC and feel confidant in sailing by a certain date. I would think they are starting to see the light at the end of the tunnel if they can withstand the financial losses until they are comfortable cruising again.

Just announced they (Carnival) are going after another $1B through a public stock offering. They're already adding to that $3.5B they got last month. I keep wondering why. Call me nuts (again) but I still think they're positioning themselves to either snap up another line, or at least take a stake in one.

Nice theory.

Beginning to sound like one of the financial blogs I'm in...they're fun, as long as you don't risk r/l $$ based on what you read in em...BTW..how many ships they have in the pipeline?

From the Miami Herald last month (Jan 11, 2021).

Carnival Corporation has enough cash to survive a cruise-less 2021, CEO Arnold Donald told investors Monday. The company reported a net loss of $2.2 billion during the final quarter of 2020 but ended the year with $9.5 billion in liquidity, enough to endure at least 12 more months without cruises, Donald said.

Another article stated their cash burn is about $500m per month. I assume that's for all debt obligations, including everything from debt service to paying the light bill, but I admit I could be wrong about that. By those calculations they could still end the year with $3.5B in cash. ($500m x 12 months = $6B and $9.5B - $6B = $3.5B).

OK, since they announced they have all this cash and can pay the bills through the end of this year (their words), my question is why did they need to raise another $3.5B? Obviously I don't know, but I can speculate. I wonder if they're planning to take a stake or controlling interest in another cruise line. Call me nuts (probably true) but I wonder if they have NCL (or one of their brands) in their crosshairs.

Hopefully, you will be working again soon and cruising will return to a way we can all be happy about. For us being retired has been profitable. No trips to pay for, no eating out (not that we did a lot anyway), lower gas bills for the automobiles (no visiting friends or family) and fewer new clothes purchased (although some larger sizes may soon be needed). Our household expenses have stayed about the same. So now we have money to cruise a bit more. Not to say we are a lot better off financially, but we could afford another cruise.

All the points posted here are well taken and logical. For us, due to the death of the economy and of course the "governments" flip flops on openings and closings, many small and medium businesses will not be re-opening. I have worked only 60 days in the last 20 months. Needless to say, any reserved funds that were set aside for cruising have gone to other needs. I can also see that some of the cruise lines will not be there in 18 months. The family still wants to cruise, but at this time we may not even get a chance in 2022, so maybe with some juggling and downsizing we can get something going in 2023. There may not be the old style of cruising, we will wait and see.. Good luck to all concerned and all the folks on this site. I hope that 2022 works best for all of us.

CQ, I guess you meant they're "losing as much as they're gaining"...by all the bookings I suppose...but they're not, its actually WAY worse than anything like a breakeven..., since BEFORE all this, what they sold was theirs..the only thing they really had to "finance" was new construction...now, they've borrowed BILLIONS TO stay afloat, with NO income attributable to that COVID shutdown, (with no real end in sight)...just expense, paid for with borrowed $$,,,and all that debt has to be serviced, or refinanced as it comes due (and one issue coming due soon!)...you don't pay the bondholders, your business ceases to exist, or has new owners, not necessarily in that order.