UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: junkman02 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35351  
Subject: Re: Royal Caribbean’s Bonds? Date: 12/7/2009 3:32 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Talk about picking a "timely" company to investigate! I swear I didn't know that TMF's research department was starting to dig into RCL. But just today, they did an article on RCL contrasting it with a competitor, CCL. http://www.fool.com/investing/general/2009/12/07/better-buy-...

As I start digging into RCL's specifics, I suspect I might have over-estimated the downsides. They've got 38 boats in service, with construction orders for six more. That's a lot of iron floating around.Some of it has to be worth more than its scrapping value. RCL seems to be one fifth the size of CCL. So the latter would be the natural buyer of the better assets if RCL went under.

If the 7.5's of '27 are priced around 80, what I'd like to see is a way to justify a Ch 11 workout price of around 40. My guess is that a settlement with creditors would mainly be a debt-for-equity swap, although old-debt-for-new-debt, especially PIK debt, would probably be part of the mix as well. So much depends on how long it takes for the global economy to recover and how much discretionary money an aging global population --most cruise passengers are gray-haired-- wants to spend on a marine shopping/eating.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Macro Economics

The Future, or What's Left of It
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement