Kloster 1993 Q1 Results

Kloster Cruise has reported a loss of $16.3 million in the first quarter ended March 31, 1993, compared to a loss of $2.7 million in the same period last year. Gross revenue was not available.

Vard, parent company to Kloster Cruise, attributed the loss to “a shortfall in Norwegian Cruise Line’s revenues” as well as higher interest expense and appreciation than last year. Royal Viking Line and Royal Cruise Line performed “roughly as budgeted”, according to Vard.

Kloster Cruise also expects to incur a net loss from operations in 1993 as a whole.

Vard’s shares later received a boost as the new Chairman of the Board Terje Mikalsen bought one million shares. At press time, Yard traded for NOK 27, up from NOK 23 at the beginning of the week.

$300 Million Loan

Kloster Cruise is presently seeking the placement of a $300 million 10-year bond issue in the United States. The bonds will be offered to a limited number of investors, and the offering is expected to be completed during May, according to Yard. The bonds will be mortgaged on the Norway and the Seaward.

According to a spokesperson for Yard, a road show in the United States was completed today. He said he expected the interest rate to be determined in the next four to five business days and that the offering would be completed in the following two weeks. Sources have previously indicated an interest rate as high as 11 percent.

The loan would solve Kloster Cruise’s acute short term financial needs. More than $227 million in payments on loans are due in 1993. Total debt is about $800 million before the delivery of the Windward. In addition, the company is working to refinance other loans including a $125 million loan to the Industrial Bank of Japan.

The spokesperson said that total debt after the bond issue has been completed and after the delivery of the Windward would be about $1 billion. He said that Norwegian Cruise Line will take delivery of the Windward on May 4.

According to sources, Kloster Cruise is presently operating at the mercy of the banks which reportedly have given Kloster Cruise a May 31 deadline to complete its bond issue.

Torstein Hagen has been elected to the Board of Directors of Kloster Cruise and “is working on the company’s behalf with special projects.”

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