Norwegian Cruise Line announces $315M senior notes offering

By Tamara Parker • Wednesday, September 18 07:56 • Permanent Link

NCL Corporation Ltd. (NCLC), a subsidiary of Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH), has announced its proposed offering of $315.0 million aggregate principal amount of senior notes due 2030 in a private offering. The net proceeds from this offering, combined with cash on hand, will be used to redeem $315.0 million aggregate principal amount of the 3.625% senior notes due 2024, including any accrued and unpaid interest thereon.

The offering of senior notes due 2030 is being made to qualified institutional buyers in reliance on Rule 144A under the Securities Act, and outside the United States, only to non-U.S. investors pursuant to Regulation S. It's important to note that the notes will not be registered under the Securities Act or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

The press release also contains a cautionary statement concerning forward-looking statements, emphasizing the uncertainties and risks involved in such projections.

The proposed offering will have a significant impact on the company's financials, particularly in terms of its debt structure and interest expenses. It signifies NCLC's strategic move to manage its debt obligations and optimize its capital structure.

This announcement comes as part of NCLC's ongoing efforts to strengthen its financial position and adapt to the evolving market conditions, especially in the travel and leisure industry. The decision to redeem the 2024 senior notes and issue new senior notes due 2030 reflects the company's focus on optimizing its debt profile and capital allocation strategies.

The details provided in the press release represent a critical shift in NCLC's financial activities, showcasing the company's proactive approach to financial management and capital restructuring. The specific figures and proposed actions outlined in the release underscore NCLC's commitment to enhancing its financial flexibility and addressing upcoming debt maturities. The market has reacted to these announcements by moving the company's shares -0.5% to a price of $19.76. Check out the company's full 8-K submission here.

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