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MSC Cruises and Fincantieri celebrate float out of MSC Seashore

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 20 August 2020 20 August 2020

The float out of MSC Seashore took place today at the Fincantieri shipyard in Monfalcone, Italy. This is a major milestone in ship building as it is the first time a new vessel touches water and sees the ship enter the next phase of construction. MSC Seashore, which will be the Company’s longest ship at 1,112 ft. and the largest and most innovative ever built in Italy, has now been moved to a wet dock until her delivery in July 2021 to allow for work on her interior.

MSC Seashore will become the third of a total of four vessels in MSC Cruises innovative and ground-breaking Seaside class of ships, following MSC Seaside and MSC Seaview, which launched in 2017 and 2018 respectively, and the first of two enriched Seaside Evo ships with newly designed public spaces, more staterooms and the highest ratio of outdoor space per guest of any ship in the Company’s fleet. More than 65 percent of the ship has been enhanced to make MSC Seashore a significant evolution of her sister ships.

Giuseppe Bono, CEO, Fincantieri, commented: “The float out has always been one of the most satisfying moments for those involved in the construction of a ship. It is also the occasion to further strengthen everyone’s commitment, because when the ship touches the sea, a lot of work has already been done, but much more still lies ahead. This applies even more to “MSC Seashore,” which will become the new flagship of MSC Cruises: a record-breaking ship, that focuses on innovation, technology and design, and emphasizing the Fincantieri leadership.” Bono concluded, “The uncertain situation that we are experiencing worldwide adds even more important value to this day, which bodes well not only for MSC Cruises and for our company, but for the entire cruise industry.”

Pierfrancesco Vago, Executive Chairman, MSC Cruises added: “We are committed to our new builds program, which with each new class of ships sees us innovating and setting new standards in the industry. MSC Seashore will in fact be the largest and most innovative cruise vessel ever built in Italy, featuring the latest and most advanced environmental technology currently available. She will also be one of two new ships for which we will receive delivery in 2021, thus underlying our belief in the long-term growth prospects of the sector — as also demonstrated by the return to service of our first ship earlier this week as well as the investments made in our new health and safety operating protocol which is already setting a new standard for the industry.”

Very latest environmental technology

The 169,500 GT ship with a maximum capacity of 5,877 guests (4,540 double occupancy), will be equipped with the latest technologies to minimize her environmental footprint.

MSC Seashore will be fitted with a state-of-the-art selective catalytic reduction (SCR) system to reduce nitrogen oxide by 90 percent and a next-generation advanced wastewater treatment system (AWTS) to treat wastewater to a very high quality where the end product is of a better standard than most land-based municipal waste standards around the world.

These features will add to other effective environmental technologies deployed on MSC Seashore, and across the Company’s fleet, to minimize and continuously reduce environmental impact, and ensure even cleaner air emissions, including cutting-edge hybrid exhaust gas cleaning systems (EGCS) that removes 98 percent of sulphur oxide from ship emissions; advanced waste management systems; ballast water treatment systems approved by the United States Coast Guard; latest-technology systems for the prevention of oil discharges from machinery spaces and various effective energy-efficiency improvements — from heat recovery systems to LED lighting. Additionally, MSC Cruises currently has on order three LNG-powered vessels, one of which is currently under construction.

MSC Seashore will also be fitted with shore-to-ship power which connects a docked cruise ship to a port’s local power grid to further reduce air emissions. This feature is broadly available across MSC Cruises’ entire fleet and has been standard across all of the Company’s new ships since 2017.

Enhanced and enriched design

MSC Seashore, as with the other iconic Seaside generation ships, offers a range of breath-taking and stand-out design features to enable guests to connect with the sea, such as the spectacular Bridge of Sighs, stunning panoramic aft elevators and stylish glass-floor catwalks.

Some of the new enhancements include an additional 52 ft. of extended length of the ship, 107,639 sq. ft. of additional deck space for an even greater and more spacious onboard experience, a larger MSC Yacht Club — the all-inclusive ‘ship within a ship’ premium concept — and an enhanced guest flow, with two central meeting points positioned at the middle and forward part of the ship.

MSC Seashore will offer a wider range of accommodation with more suites including 28 additional terraced suites, two suites with private whirlpools and, in the MSC Yacht Club, two new stateroom categories offering 41 Deluxe Grand Suites and two Owner’s Suites with whirlpools.

Families will be able to benefit from modular connected staterooms that can connect to accommodate between six and 10 people, plus bigger and more spacious staterooms for guests needing greater accessibility, with 75 in total available.

Two brand new restaurants will be introduced and five specialty restaurants will be newly located to allow for waterfront seating on the ship’s stunning boardwalk to give guests a greater sea view as they dine al fresco.

MSC Seashore will also have a new double-decker aft lounge, a larger casino and 20 distinct specialty bars, cafes and lounges. The ship will feature a new aft pool design, an enlarged indoor pool and a new interactive waterpark, which will provide thrills and spills for guests of all ages. Clubs for young children and teenagers have been separated from a larger kids’ zone.

The ship will feature the latest customer-centric technology with MSC for Me available across multiple digital channels, offering guests a stress-free way to plan and book the things that matter to them. Guests can access information across a range of digital touchpoints including a useful app, interactive in-stateroom TV, interactive screens around the ship as well as ZOE, the virtual personal cruise assistant, available in every stateroom.

In summer 2021, all three Seaside class ships will be deployed together in the Western Mediterranean. These ships have been designed for the warmer weather making them perfect for the summer season for guests who want to enjoy the sunshine and stunning ocean views in this popular cruise region.

MSC Seashore will offer the popular ‘Six Pearls’ itinerary calling the Italian cities of Genoa, Pompeii, Naples, and Messina; Valletta, Malta; Barcelona, Spain; and Marseille, France. MSC Seaside and MSC Seaview will also operate high-demand 7-night cruises in the West Mediterranean homeporting in Genoa.

Following her an inaugural season in the Mediterranean, MSC Seashore will then head to the U.S. and arrive in Miami in November 2021, sailing 7-night Caribbean itineraries, including stops at MSC Cruises’ private island in the Bahamas, Ocean Cay MSC Marine Reserve.

Unnamed Carnival brand target of ransomware attack

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 18 August 2020 18 August 2020

An undisclosed brand of the Carnival Corporation & plc group has become a target of a ransonware attack, the company said in a statement.

The attack was detected on 15 August and it that accessed and encrypted a portion of one brand’s information technology systems. “The unauthorized access also included the download of certain of our data files,” Carnival said.

“Promptly upon its detection of the security event, the Company launched an investigation and notified law enforcement, and engaged legal counsel and other incident response professionals. While the investigation of the incident is ongoing, the Company has implemented a series of containment and remediation measures to address this situation and reinforce the security of its information technology systems,” the company said.

Carnival is working with industry-leading cyber security firms to immediately respond to the threat, defend its information technology systems, and conduct remediation.

“Based on its preliminary assessment and on the information currently known (in particular, that the incident occurred in a portion of a brand’s information technology systems), the Company does not believe the incident will have a material impact on its business, operations or financial results. Nonetheless, we expect that the security event included unauthorized access to personal data of guests and employees, which may result in potential claims from guests, employees, shareholders, or regulatory agencies,” Carnival said.

TUI, RCG and Carnival continue to raise funds

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 13 August 2020 13 August 2020

Three major cruise ship operators have raised additional liquidity in the past week in an effort to shore up their finances in the wake of the ongoing Covid-19 pandemic.

The German TUI AG group and KfW, the state owned developmsnt bank that has it head office in Frankfurt, have agreed to increase the existing KfW tranche by €1.05 billion. “The drawing of this amount is subject to (i) the issuance of a Convertible Bond to the Economic Stabilization Fund (WSF) in the amount of €150m and (ii) a waiver by the bondholders of the Senior Notes due in October 2021. Both conditions and other formal requirements need to be fulfilled by 30 September 2020,” TUI said in a statement.

The stabilisation package which totals at €1.2 billion strengthens TUI’s position and would provide sufficient liquidity in this volatile market environment to cover TUI’s seasonal swing through winter 2020-21 and thereafter and in the case of any further long-term travel restrictions and disruptions related to Covid-19.

Including the additional stabilisation package, TUI AG would, as of today, have cash and available facilities of €2.4 billion.

Similar to the first KfW tranche in the amount of €1.8 billion issued in April, the additional KfW tranche will be structured as an increase to TUI’s existing Revolving Credit Facility (“RCF”). The execution of the amendments with the RCF banking consortium is almost finalised.

“All conditions on the issuance of the Convertible Bond have been agreed. The potential Convertible Bond would be subscribed by the WSF subject to the conclusion of a subscription agreement and shall have an initial term of six years. The bond would bear interest at a rate of 9.5% p.a. TUI has a redemption right once the €1.05 billion KfW tranche is redeemed. If fully converted, it would represent a stake in TUI AG of up to 9%,” TUI said.

TUI owns 50% of the shares in TUI Cruises, which again owns in full Hapag-Lloyd Cruises. Marella Cruises in the UK is fully owned by TUI.

Meanwhile Royal Caribbean Group (RCG) said on 12 August that it has secured a binding commitment from Morgan Stanley for a $700 million term loan facility. The company may draw on the facility at any time prior to August 12, 2021. Once drawn, the loan will bear interest at L + 3.75% and will mature 364 days from funding.

“The facility will be guaranteed by RCI Holdings, LLC, a wholly owned subsidiary of the Company that owns the equity interests in subsidiaries that own seven of the Company's vessels. The Company has the ability to increase the capacity of the facility by an additional $300 million from time to time subject to the receipt of additional or increased commitments and the issuance of guarantees from additional subsidiaries of the Company. If drawn, the Company expects to use the net proceeds for general corporate purposes,” RCG said..

Carnival Corporation & plc on 7 August said it had closed its previously announced registered direct offering of 93,663,808 shares of its common stock at a price of $14.02 per share to a limited number of holders of its 5.75% Convertible Senior Notes due 2023 (the "Convertible Notes"). The Corporation used the proceeds from this closing to repurchase $836,284,000 principal amount of its Convertible Notes in privately negotiated transactions.

“The Corporation expects to close an additional 5.5 million shares as part of the registered direct offering on August 10, 2020. The Corporation intends to use the proceeds from the August 10th closing to repurchase an additional $49.3 million principal amount of its Convertible Notes in a privately negotiated transaction,” Carnival said.

Holland America Line extends its pause of cruise operations to all departures through Dec. 15, 2020

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 12 August 2020 12 August 2020

With the continuation of travel and port restrictions due to global health concerns, Holland America Line is extending its pause of cruise operations and cancelling departures on all ships through Dec. 15, 2020.

The pause extension affects Caribbean, Mexico, Panama Canal, Pacific Coastal, South America, Antarctica, Hawaii, South Pacific, Australia and Asia itineraries.

Those with impacted cruises automatically will be cancelled, and no action is needed for guests opting for the Future Cruise Credit (FCC). All guests will receive an FCC per person as follows:

– Paid in Full: Those who had paid in full will receive 125% FCC of the base cruise fare paid to Holland America Line.

– Not Paid in Full: Those with bookings not paid in full will receive an FCC of double the amount of the deposit paid for the cruise. The minimum FCC is $100 and the maximum will be an amount up to the base cruise fare paid.

The FCC is valid for 12 months from the date of issue and may be used to book sailings departing through Dec. 31, 2022. All other funds paid to Holland America Line may be transferred to a new booking or will automatically be refunded via the method of payment used to purchase the services.

Guests who prefer a 100% refund of monies paid to Holland America Line can visit the Cancellation Preferences form https://book2.hollandamerica.com/cp/ to indicate this preference no later than Sept. 15, 2020.

The above options are not applicable to guests booked on a charter sailing. Other booking and cancellation conditions and policies may apply if the cruise was not booked through Holland America Line. See the terms and conditions in the Cancellation Preferences form <https://book2.hollandamerica.com/cp/> for all details.

Recognizing the vital role travel advisors play in the success of the cruise industry, Holland America Line will protect travel advisor commissions on bookings for cancelled cruises that were paid in full and for the total amount of the FCC when rebooked.

As previously announced, Holland America Line paused global cruise operations and cancelled all Alaska, Europe and Canada/New England cruises for 2020; additional departures from the port of Vancouver, British Columbia, Canada, in 2020; and select Hawaii itineraries for early 2021.

Royal Caribbean Group second quarter loss $1.6 billion

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 11 August 2020 11 August 2020

Royal Caribbean Group (RCG), the second largest cruise shipping group in the world, has booked a deep loss in the second quarter and raised liquidity so that it can continue to weather the Covid-19 storm.

Net loss amounted to $1.6 billion in the second quarter of this year compared to a profit of $472.8 million in the same period last year.

The company has taken a number of steps to strengthen its finances in the recent past. These include:

-The issuance of $1.0 billion of priority guaranteed notes and $1.15 billion of convertible notes;

-The issuance of GBP 300 million of commercial paper in the UK providing over $370 million of additional liquidity;

-Completed a $0.9 billion 12-month debt amortization holiday from all export-credit backed facilities;

-Amended over $11 billion of commercial bank and export credit facilities to provide covenant waivers through the fourth quarter of 2021; and

-Further reduced operating expenses due to the fleet layup measures and actions to decrease sales, marketing and administrative expenses.

As per 30 June, debt worth $300 million was to mature before the end of this year, while $1.3 billion would mature in 2021.

RCG has $11.3 billion of committed credit facilities that are available to fund ship deliveries originally planned through 2025.

The company had $4.1 billion in liquidity at the end of the quarter and it reiterated its earlier assessment that its cash burn amounts to about $250 million to $290 million per month, it said.