Top Headlines

Norwegian’s principal shareholders in 22 million share secondary offering

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 03 December 2013 03 December 2013

Norwegian Cruise Line Holdings Ltd, the Bermuda domiciled parent of Norwegian Cruise Line, has unveiled launch of a secondary public offering of 22 million of its ordinary shares by Star NCLC Holdings Ltd. and certain funds affiliated with Apollo Global Management, LLC and TPG Global, LLC

“The selling shareholders will grant the underwriters a 30-day option to purchase an aggregate of up to 3.3 million additional ordinary shares. Norwegian will not sell any ordinary shares in the offering and will not receive any of the proceeds from the offering,” Norwegian said in a statement.

UBS Investment Bank and Barclays are acting as bookrunners and the representatives of the underwriters for the offering. Citigroup, Deutsche Bank Securities, Goldman, Sachs & Co. and J.P. Morgan are also acting as bookrunners for the offering. Credit Agricole CIB, DNB Markets, HSBC, Nomura and SunTrust Robinson Humphrey are acting as co-managers for the offering.

Shares in Norwegian Cruise Line Holding are listed on Nasdaq in New York.

Concerns mount over future of STX Finland

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 28 November 2013 28 November 2013

Vasemmistoliitto, a left wing member in prime minister Jyrki Katainen's coalition, urges the Finnish government to quickly acquire a share of at least 34% in STX Finland, the troubled shipbuilder that is owned by STX Offshore & Shipbuilding, to secure the future of the Finnish shipbuilding industry.

"The passivity of the owner of STX (Finland) has led to future orders being put in danger as even letters of intent cannot be worked on to firm orders due to financing problems. The incapability and unwillingness of the Korean owner (to recapitalise STX Finland) threatens to drive out the entire shipbuilding sector away from Finland," the party said in a statement.

"The time has come to severe the umbilical cord to the troubled STX group and take the shipbuilding industry into Finnish ownership. Finland must rid herself of the Korean owner that is not committed to continue shipbuilding in Finland," Vasemmistoliitto said.

STX Offshore & Shipbuilding owns 100% of STX Finland and 64% of ATX France via STX Europe, a company based in Oslo that the Korean company owns in full

The situation in Finland took an acute turn for the worse on Wednesday, when the shipbuilder said that talks with Scandlines, the Danish-German ferry, to finalise an order agreed in principle in July for two large short haul ferries had been terminated as financial details could not be put in place on time.

Media reports in Finland have suggested that tumbling block was a weak balance sheet of STX Finland, which had prevented Finnvera, the Finnish state guarantee institution, from issuing guarantees of construction time loans to STX Finland. Reports say that Scandlines, which is controlled by the London based private equity investor 3i, has opened talks with other shipyards.

STX Finland has two 99,300 gross ton cruise ships on order from TUI Cruises in Hamburg, the second of which will be delivered in 2015.

Earlier today, Frontline 2012, the rapidly expanding commodity shipping company in the business empire of London based billionaire shipowner John Frederiksen, said it has deep concerns over the fate of bulk carrier orders at other shipyards of STX Offshore & Shipbuilding

Frontline 2012 has eight newbuilding contracts with STX Dalian and further six newbuildings with STX Offshore & Shipbuilding (Korea). "STX Korea has subsequently subcontracted the latter vessels to STX Dalian. STX Dalian has encountered financial difficulties, and the construction has stopped. The company is following the situation closely and will make every effort to ensure that STX deliver the newbuildings, which they are contractually committed to, the company said.

"There is however a substantial risk that these newbuildings will not be delivered according to the contracts and Frontline 2012 has therefore taken legal measures to be compensated for any loss caused by non delivery and is currently in an arbitration process with STX, mainly on the six ships, for which STX Korea are responsible," Fronline 2012 noted.

Kristina Cruises seeks debt restructuring, cancels Canary Islands programme

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 27 November 2013 27 November 2013

Kristina Cruises, the Finnish cruise shipping company, says it will seek debt restructuring and will cancel it Canary Islands programme that was due to run until 20 March 2014.

The company operates the 12,700 gross ton Kristina Katarina that was built in Poland in 1982 under the Finnish flag.

Kristina Cruises said in a statement that a generally weak economic situation in Finland and a sharp fall in package tours to the Canary Islands had resulted in the decision, which was aimed to limit further losses. The company will submit its debt restructuring application to the regional court of Southern Karelia on 28 November.

However, the company will continue to operate its river cruise programme and intends to bring Kristina Katarina back to service from 27 March 2024 onwards, it said.

Oasis 3 could differ from first two, UK "very important" for RCI -- Goldstein

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 21 November 2013 21 November 2013

The third Oasis class cruise ship of Royal Caribbean International (RCI), the contemporary market unit in the Royal Caribbean Cruises Ltd (RCCL) group, could differ from the two first units of the class as there is such a big gap between the entry into service of the second and the third unit, said Adam Goldstein, president of RCI.

The Oasis class of 226,000 gross ton ships, two of which have been built at STX Finland and a third one is on order at STX France, has been the most successful type of cruise ships, Goldstein told Cruise Business Online. For this reason, the company is eager to ensure that the third unit will repeat the success of the two earlier vessels.

Meanwhile, Anthem of the Seas that will be the second unit of the 167,800 gross ton Quantum class, will not differ from Quantum of the Seas, the first ship, in any significant way as there is bot enough time between the delivery of the two ships to incorporate major design changes. A third vessel, still unnamed, is also on order at Joseph L. Meyer Werft in Germany.

The deployment of the units of the Oasis and Quantum class ships remains undecided at this point in time, Goldstein said.

Moving on to the British market that will employ Anthem of the Seas upon its delivery in April 2015, Goldstein said that the UK is the second largest source market for RCI after the US and therefore "very important" for the company that has three ships based in British ports in the late spring, summer and autumn of each year.

Anthem of the Seas may stay in UK year around in future as RCCL invests in growing British business - Paul

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 21 November 2013 21 November 2013

Royal Caribbean International (RCI) may at some point retain Anthem of the Seas in the UK year round, although at this point there are no such plans, said Dominic Paul, vp international at Royal Caribbean Cruises Ltd (RCCL), parent company of RCI. "We need to look at where the ship would be most popular and where it can obtain the bet yields," he told Cruise Business Review.

The RCCL group has invested heavily in the past several years to develop its business in the UK and it plans to continue to do so also in the future. Celebrity Cruises, the group's premium market brand, has performed well in the UK and Paul said it has found "a soft spot" in the heart of the British customers. The company operates Celebrity Eclipse and Celebrity Infinity from Southampton and Harwich, respectively, for most of each year.

As far as base ports are concerned, Paul said that Southampton as the principal turnaround port in the UK was a natural choice as the British home port of Anthem of the Seas, while Harwich that hosts one Royal Caribbean International and one Celebrity Cruises vessel, is convenient for passengers arriving from North America and a good base port for cruises heading north from the UK.

Looking further ahead, Paul said it is possible that ships of the RCCL group may sail from other turnaround ports in Britain as well,although at this point in time no decision has been made to post ships in other ports beyond Southampton and Harwich.