Norwegian Cruise Line Holdings Ltd. successfully secures over USD two billion of additional liquidity in oversubscribed capital markets transactions


Norwegian Cruise Line Holdings Ltd. (NCLH) yesterday announced that it has successfully secured over USD two billion of additional liquidity in response to impacts of the COVID-19 global pandemic on the Company and the cruise industry, including the temporary suspension of voyages and to safeguard against a further downside scenario.

Yesterday, the Company announced the launch of a series of capital markets transactions, led by Goldman Sachs, to raise approximately USD two billion. The transaction has since been upsized to gross proceeds of USD 2.225 billion (USD 2.4 billion if the underwriters exercise their full overallotment options) due to significant oversubscription and demand across all three offerings. The transactions consisted of (1) USD 400 million public offerings of common equity, (2) USD 750 million exchangeable senior notes offering, (3) USD 675 million senior secured notes offering and (4) USD 400 million private investment from global consumer-focused private equity firm L Catterton.

Contingent on completion of the transactions, the Company expects to have approximately USD 3.5 billion of liquidity. This significantly strengthens the Company’s financial position and liquidity runway and it now expects to be positioned to withstand well over 12 months of voyage suspensions in a potential downside scenario. While this is not the Company’s base case expectation, the Company has taken a swift and proactive approach to protect its future given the significant uncertainty and unknown duration of the COVID-19 global pandemic. When the transactions are completed, the additional liquidity alleviates management’s concern about the Company’s ability to continue as a going concern for the next 12 months.

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