NCL Corporation Ltd. Announces Proposed Offering of Senior Notes
NCL (NCLH) has announced a proposed private offering of $1.8 billion in senior notes due 2032. The company plans to use the proceeds, along with cash on hand, to redeem $1.2 billion of 5.875% Senior Notes due 2026 and $600 million of 8.375% Senior Secured Notes due 2028, including associated premiums, fees, and expenses.
The Notes will be offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. investors under Regulation S. The redemption of existing notes is contingent upon the completion of this new Notes Offering.
NCL (NCLH) ha annunciato un'offerta privata proposta di 1,8 miliardi di dollari in note senior con scadenza nel 2032. L'azienda prevede di utilizzare i proventi, insieme alla liquidità disponibile, per rimborsare 1,2 miliardi di dollari di note senior con tasso del 5,875% in scadenza nel 2026 e 600 milioni di dollari di note senior garantite con tasso dell'8,375% in scadenza nel 2028, includendo i premi, le spese e i costi correlati.
Le note saranno offerte esclusivamente a investitori istituzionali qualificati ai sensi della Regola 144A e a investitori non statunitensi ai sensi del Regolamento S. Il rimborso delle note esistenti è subordinato al completamento di questa nuova offerta di note.
NCL (NCLH) ha anunciado una oferta privada propuesta de 1.8 mil millones de dólares en notas senior que vencen en 2032. La compañía planea utilizar los ingresos, junto con el efectivo disponible, para redimir 1.2 mil millones de dólares en Notas Senior al 5.875% que vencen en 2026 y 600 millones de dólares en Notas Senior Garantizadas al 8.375% que vencen en 2028, incluyendo los premios, tarifas y gastos asociados.
Las Notas se ofrecerán exclusivamente a compradores institucionales calificados bajo la Regla 144A y a inversores no estadounidenses bajo la Regulación S. La redención de las notas existentes está sujeta a la finalización de esta nueva oferta de notas.
NCL (NCLH)는 2032년에 만기되는 18억 달러 규모의 선순위 노트를 제안하는 사모 제공을 발표했습니다. 회사는 이 수익금과 보유 현금을 사용하여 2026년에 만기되는 12억 달러 규모의 5.875% 선순위 노트와 2028년에 만기되는 6억 달러 규모의 8.375% 선순위 담보 노트를 환매할 계획이며, 이에는 관련 프리미엄, 수수료 및 비용이 포함됩니다.
해당 노트는 144A 규정에 따라 자격을 갖춘 기관 구매자와 S 규정에 따라 비미국 투자자에게 독점적으로 제공됩니다. 기존 노트의 환매는 이 새로운 노트 제공의 완료에 따라 결정됩니다.
NCL (NCLH) a annoncé une offre privée proposée de 1,8 milliard de dollars en obligations senior arrivant à échéance en 2032. La société prévoit d'utiliser les produits, ainsi que la trésorerie disponible, pour racheter 1,2 milliard de dollars d'obligations senior à 5,875% arrivant à échéance en 2026 et 600 millions de dollars d'obligations sécurisées senior à 8,375% arrivant à échéance en 2028, y compris les primes, frais et dépenses associés.
Les obligations seront offertes exclusivement aux acheteurs institutionnels qualifiés conformément à la règle 144A et aux investisseurs non américains selon le règlement S. Le rachat des obligations existantes est conditionné à l'achèvement de cette nouvelle offre d'obligations.
NCL (NCLH) hat ein vorgeschlagenes privates Angebot über 1,8 Milliarden Dollar an vorrangigen Anleihen mit Fälligkeit im Jahr 2032 bekannt gegeben. Das Unternehmen plant, die Einnahmen zusammen mit vorhandenen Liquiditätsmitteln zu verwenden, um 1,2 Milliarden Dollar an Senior Notes mit 5,875% Zinsen, die 2026 fällig sind, und 600 Millionen Dollar an 8,375% besicherten Senior Notes, die 2028 fällig sind, einschließlich der damit verbundenen Prämien, Gebühren und Kosten, zurückzukaufen.
Die Anleihen werden ausschließlich an qualifizierte institutionelle Käufer gemäß Regel 144A und an nicht-US-amerikanische Investoren gemäß Regulation S angeboten. Der Rückkauf der bestehenden Anleihen ist abhängig vom Abschluss dieses neuen Anleiheangebots.
- Refinancing of existing debt structure
- Potential reduction in interest expense through new notes issuance
- Extension of debt maturity to 2032
- Taking on $1.8 billion in new debt
- Additional transaction premiums and fees will be incurred
Insights
This debt refinancing initiative represents a strategic financial maneuver by NCL The company is essentially restructuring
The transaction's primary benefits include:
- Potential reduction in interest expenses if the new notes carry a lower rate
- Extension of debt maturity profile to 2032
- Elimination of secured debt in favor of unsecured notes, which provides greater financial flexibility
For investors, this refinancing signals management's proactive approach to liability management and could improve the company's debt service capacity. However, the success of this offering will largely depend on the interest rate secured for the new notes, which will reflect current market conditions and NCLH's credit profile.
The proposed debt restructuring demonstrates NCL's commitment to optimizing its capital structure. By retiring the secured notes, the company is effectively de-risking its balance sheet and creating additional unencumbered assets. This is particularly relevant for a capital-intensive industry like cruise lines, where financial flexibility is important for operational stability and growth opportunities.
Think of this like upgrading from a secured home mortgage to an unsecured personal loan with better terms - it frees up collateral while potentially reducing costs. The longer maturity of the new notes to 2032 also provides an extended runway for the company's recovery and expansion plans.
The timing is strategic, capitalizing on the current market dynamics before potential rate changes. However, investors should monitor the new notes' pricing, as it will directly impact NCLH's future interest expenses and free cash flow generation capacity.
MIAMI, Jan. 07, 2025 (GLOBE NEWSWIRE) -- NCL Corporation Ltd. (“NCLC”), a subsidiary of Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH), announced today that it is proposing to sell
We intend to use the net proceeds from the Notes Offering, together with cash on hand, to redeem
The Notes are being offered only to persons reasonably believed to be 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. 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 of the Securities Act and applicable state laws.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release also shall not constitute an offer to purchase, a solicitation of an offer to sell, or notice of redemption with respect to the 2026 Senior Notes or the 2028 Senior Secured Notes. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
Cautionary Statement Concerning Forward-Looking Statements
Some of the statements, estimates or projections contained in this press release are “forward-looking statements” within the meaning of the U.S. federal securities laws intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding the Notes Offering and the use of proceeds therefrom, may be forward-looking statements. Many, but not all, of these statements can be found by looking for words like “expect,” “anticipate,” “goal,” “project,” “plan,” “believe,” “seek,” “will,” “may,” “forecast,” “estimate,” “intend,” “future” and similar words. Forward-looking statements do not guarantee future performance and may involve risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. For a discussion of these risks, uncertainties and other factors, please refer to the factors set forth under the sections entitled “Risk Factors” and “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. These factors are not exhaustive and new risks emerge from time to time. There may be additional risks that we consider immaterial or which are unknown. Such forward-looking statements are based on our current beliefs, assumptions, expectations, estimates and projections regarding our present and future business strategies and the environment in which we expect to operate in the future. These forward-looking statements speak only as of the date made. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations with regard thereto or any change of events, conditions or circumstances on which any such statement was based, except as required by law.
Investor Relations & Media Contact
Sarah Inmon
(786) 812-3233
InvestorRelations@nclcorp.com
FAQ
What is the size of NCLH's new senior notes offering in January 2025?
How will NCLH use the proceeds from its 2032 senior notes offering?
Who is eligible to purchase NCLH's new 2032 senior notes?
What existing NCLH notes will be redeemed with the new offering?
Is NCLH's redemption of 2026 and 2028 notes guaranteed?
