May 6, 2020 - The COVID-19 pandemic is affecting all cruise companies hard. Also suffers from the effects of the virus Norwegian Cruise Line Holdings, the parent company of the Norwegian Cruise Line, Oceania and Regent Seven Seas Cruises brands. The focus of the corporate group is currently on securing liquidity.
Under the influence of the corona pandemic, liquidity is needed in all areas of the economy. This is especially true for airlines and cruise lines. Norwegian Cruise Line Holdings endeavors to generate liquid funds through various measures. Until recently, the group of companies was regarded as the most profitable of the cruise lines operating worldwide. Without measures to create liquidity, business success is increasingly at risk.
The Carnival Corporation most recently relied on a sustainable investment by the Saudi sovereign wealth fund PIF. Norwegian is placing a US $ 2026 million convertible bond with the fund company Catterton Partner, which runs until 400. The extreme form of loan financing is used with “payment-in-kind”. The debtor makes no payments to the obligee until the bond matures. In other words, Norwegian and the creditor company have high hopes for regaining old skills in the future.
Norwegian Spirit off Cozumel / Mexico
Upon submission of the quarterly figures as of March 31, 2020, the holding company recorded an operating loss. The outlook for the end of the financial year as of December 31 is also based on a loss situation. The company therefore feels compelled to generate additional financial resources. Norwegian has defined potential savings of US $ 515 million when building new ships for the current year alone. We are also looking for ways to reduce the Group's operating costs and cash outflows. This includes the costs of the ships including fuel, insurance, port fees, reduced crew strength, personnel costs, etc. The ships are prepared for a "cold lay-up". The measure means that ships are only supplied with energy for emergencies (lights, winches, fire extinguishing systems). The company is silent on the extent of these savings opportunities.
Norwegian is also worried about the tendency of the booked passengers to have the travel price paid back. The refunds also limit liquidity. Discussions with credit card organizations on this matter had shown that they were after additional collateral, e.g. B. Ships, asked. Without a doubt: times are tough!