ST. NAZAIRE, France -- Pireaus, Greece-based Festival Cruises will
issue a $200 million European bond later this year to fund the
construction of two megaships, said George Poulides, Festival's
chief executive officer, during a keel-laying ceremony last week
for another new ship, European Dream.
Festival is planning two new ships that will be "slightly
larger" than Dream, the third in a series of new vessels that began
with Mistral in 1999 and includes European Vision, which debuts in
June.
The first of the two new ships would be delivered in 2004.
Festival, which markets as First European Cruises in the U.S.,
is "negotiating management and pricing of the bond" with European
banks, said Poulides. The bond is a prelude to an initial public
stock offering on the Paris, London or Frankfurt exchanges, or all
three exchanges merged together, he said.
Tim Harris, formerly chairman of Princess cruises, has joined
Festival Cruises to advise Festival on its IPO plans, said
Poulides.
Speaking to yard officials and journalists at the Chantiers de
l'Atlantique shipyard, he said Festival, a privately held company,
earned $15.03 million on revenues of $173.1 million in 2000,
"mainly due to Mistral's first full year of operations." Poulides
expects revenues of about $219 million in 2001.
Festival's Vision, a sister vessel to Dream, will be the first
European ship to feature North American cruise innovations like a
rock-climbing wall and a miniature golf course. The ship also will
host this year's G8 economic summit in Genoa, Italy.
Poulides called First European's strategy "A reversal of the
formula whereby other cruise lines market mainly at [Americans] and
then top-up bookings from Europe and other markets. Our main market
is and will continue to be Europe, supplemented by our sales and
marketing activities elsewhere."
Cruceros de Espana to begin service in
April
ST. NAZAIRE, France -- In other company developments, Poulides
said Spanish Cruise Line (Cruceros de Espana) -- a three-way joint
venture among Festival, Spanish tour operator Iberojet and
Trasmediterranea, a national ferry company -- will begin service
April 23.
The line will use Festival's 900-passenger Bolero (formerly
NCL's Starward) to offer seven-night Mediterranean cruises from
Barcelona.
Beginning in October, the vessel repositions to the Caribbean
with seven-day cruises between Havana, Cuba, and Cancun,
Mexico.
Poulides said Festival is talking with French and Spanish
shipyards about a Spanish-flagged newbuild for Spanish Cruise
Line.