Crossing the Finnish line?

Well here's something you don't see much of these days:
A bailout! Royal Caribbean Cruise Line made the news (and this blog) the other day, regarding it's Diamond Crown and Anchor cutbacks, but today is even more newsworthy. With the recession, people have been asking how in the world RCCL is going to pay for the biggest, baddest ship ever built, the "Oasis Of The Seas" set to premier this Fall. Profits simply haven't been there over the last few quarters to complete the project, but help has come from an unusual source. The ship is being built in Finland, and the Finnish government realized that if somehow this project got scrapped halfway through, there would be losers on top of losers, on both sides of the Atlantic. Royal Caribbean says three European banks - BNP Paribas, Nordea Bank and SEB - each have committed to provide 20% of the $1.05 billion needed to take delivery of the 5,400-passenger ship. The remaining 40% will come from a Finnish government agency, Finnish Export Credit Ltd. The agency is a subsidiary of Finnvera, the government agency that is providing the 95% guarantee of completion - an unusually high percentage. Royal Caribbean is scheduled to take delivery in November, and the sharp tightening of credit markets over the past year had raised concerns on Wall Street over the company's ability to fund the ship and a sister vessel scheduled to debut next year. "This is the first time we can recall a government agency not just guaranteeing a portion of the outstanding debt, but also providing actual financing," notes financial analyst Robin Farley of UBS in a report. The cruise line also noted each of the banks can opt-out of the loans after 6 years.

Finland has a dramatic interest in Royal Caribbean financing and completing Oasis Of The Seas, as the shipyard where the vessel is under construction is an important employer in the country. Not only that, but failure of the first project would surely have doomed the second sister-ship! So this was more an act of self-preservation than desperation from the Finns. Royal Caribbean has not offered details on the interest rate it expects to pay for these loans, but I'm sure it will be (pardon the pun) a boatload. They did say the terms of the loans fall within the company's financial projections. In it's announcement, Royal Caribbean noted the $1.05 billion in loans it is receiving amounts to 80% of the contract price for Oasis, putting the overall cost of the vessel at $1.31 billion. Personally, I have my reservations about whether ships can become too large, and this project will certainly be Test Case Numero Uno.

Oh - did I mention Royal Caribbean has been in the news? Here's yet another item, but I think this is excellent news for cruise passengers! As I've stated before, many lines are pulling ships from the Alaska market in 2010 and beyond, and rightfully so. It will serve to stabilize cruise pricing in the region, while sending a message to greedy Alaskans to wake up and smell the moose droppings. But if cruise lines are pulling the ships out of Alaska, they must be going somewhere else, right? You are a sharp one, dear reader! Yes, that's true and RCCL announced it's "Serenade Of The Seas" will be re-stationed in San Juan, Puerto Rico in 2010, doing continuous Southern Caribbean 7-night sailings. I think that's outstanding. Serenade, Radiance and Brilliance Of The Seas are of a class of ship that I find the most beautiful ever produced, and it will give a new energy to San Juan sailings. The ship is only 5 years old, and still has a lot of good years to come. Not that Adventure Of The Seas is a slouch, a ship which has done a fine job on that itinerary the past few seasons. But Serenade is just the tweak needed to add a bit of fresh flavor. I like it!

Still being "in" on your way out?

A survey of 30,000 funerals last year revealed that TV theme tunes and pop songs are now more popular than traditional hymns at wakes and funerals. Standards like Abide With Me, Amazing Grace and Jerusalem have been eclipsed by more contemporary tunes. My Way by Frank Sinatra was the most popular, followed by Bette Midler's Wind Beneath My Wings, and Time To Say Goodbye by Andrea Bocelli and Sarah Brightman. Others in the Top 10 Downers category include Josh Grobin's You Raise Me Up and Angels by Robbie Williams. Priests and Ministers say they are forced to reject about one in 10 requests, particularly for AC/DC's Highway To Hell and Queen's former #1 hit Another One Bites The Dust.

Harry Stonebraker has been re-elected mayor of Winfield, Missouri. I like that name: Harry Stonebraker. Sounds like a Cave Man, doesn't it? Anyway you're probably wondering why I'm telling you about a mayoral election in small-town Missouri. Well, it's because the 69-year-old Stonebraker had died of a heart attack in March, a full month before the election, but ballots had already been printed and absentee voting had already begun. Turns out, he was an easy winner in Tuesday's election. Local officials say they weren't surprised by the result because "Harry was very popular." The town's current mayor, who has been acting-mayor since Stonebraker's death, will either continue in the position or someone new will be chosen to serve by the City Council until a new election can take place next year. My question is who was running AGAINST this guy? How bad a candidate must you be to lose to The Deceased?

Mayor Of Winfield, Missouri: So easy, a Cave Man can do it!