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NCL , a subsidiary of Norwegian Cruise Line Holdings (NYSE: NCLH), has announced the pricing of $1,800 million in 6.750% senior notes due 2032. The private offering is expected to close on January 22, 2025.
The company plans to use the net proceeds, along with cash on hand, to redeem $1,200 million 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 redemption is contingent upon completing the Notes Offering.
The Notes are being offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. investors under Regulation S, and will not be registered under the Securities Act.
NCL, una filiale di Norwegian Cruise Line Holdings (NYSE: NCLH), ha annunciato il prezzo di 1,800 milioni di dollari in note senior al 6,750% con scadenza nel 2032. L’offerta privata dovrebbe chiudersi il 22 gennaio 2025.
L’azienda prevede di utilizzare il ricavato netto, insieme alla liquidità disponibile, per riscattare 1,200 milioni di dollari di note senior al 5,875% con scadenza nel 2026 e 600 milioni di dollari di note garantite senior al 8,375% con scadenza nel 2028, inclusi i premi, le spese e i costi associati. Il riscatto è soggetto al completamento dell’offerta delle note.
Le note sono offerte esclusivamente a compratori istituzionali qualificati ai sensi della Regola 144A e a investitori non statunitensi ai sensi della Regolamentazione S, e non saranno registrate ai sensi della Securities Act.
NCL, una subsidiaria de Norwegian Cruise Line Holdings (NYSE: NCLH), ha anunciado la fijación de precios de 1,800 millones de dólares en notas senior al 6,750% con vencimiento en 2032. Se espera que la oferta privada cierre el 22 de enero de 2025.
La compañía planea utilizar los ingresos netos, junto con el efectivo disponible, para redimir 1,200 millones de dólares en notas senior al 5,875% con vencimiento en 2026 y 600 millones de dólares en notas garantizadas senior al 8,375% con vencimiento en 2028, incluidos los respectivos premios, tarifas y gastos. La redención está condicionada a la finalización de la oferta de notas.
Las notas se están ofreciendo exclusivamente a compradores institucionales calificados bajo la Regla 144A y a inversores no estadounidenses bajo la Regulación S, y no estarán registradas bajo la Ley de Valores.
NCL은 Norwegian Cruise Line Holdings(NYSE: NCLH)의 자회사로서 18억 달러의 6.750% 만기 2032년의 고급채권에 대한 가격 발표를 하였습니다. 사모 거래는 2025년 1월 22일에 마감될 예정입니다.
회사는 순수익과 현금을 활용하여 12억 달러의 5.875% 만기 2026년의 고급채권과 6억 달러의 8.375% 만기 2028년의 고급담보채권을 상환할 계획이며, 관련 프리미엄, 수수료 및 비용이 포함됩니다. 상환은 채권 제공 완료의 조건입니다.
채권은 144A 규정에 따라 자격을 갖춘 기관 투자자에게만 제공되며, S 규정에 따라 비 미국 투자자에게 제공됩니다. 그리고 증권법에 따라 등록되지 않을 것입니다.
NCL, une filiale de Norwegian Cruise Line Holdings (NYSE: NCLH), a annoncé le prix de 1,800 millions de dollars en obligations senior à 6,750% arrivant à échéance en 2032. L’offre privée devrait se clôturer le 22 janvier 2025.
La société prévoit d’utiliser le produit net, ainsi que des liquidités, pour racheter 1,200 millions 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. Le rachat est conditionné à la réalisation de l’offre de ces obligations.
Les obligations sont proposées exclusivement à des acheteurs institutionnels qualifiés conformément à la règle 144A et à des investisseurs non américains conformément à la réglementation S, et ne seront pas enregistrées en vertu de la loi sur les valeurs mobilières.
NCL, eine Tochtergesellschaft von Norwegian Cruise Line Holdings (NYSE: NCLH), hat die Preissetzung von 1,800 Millionen US-Dollar in 6,750% Senior Notes mit Fälligkeit 2032 bekannt gegeben. Die private Platzierung wird voraussichtlich am 22. Januar 2025 abgeschlossen sein.
Das Unternehmen plant, den Nettoprozeß zusammen mit vorhandenen Mitteln zu verwenden, um 1,200 Millionen US-Dollar an 5,875% Senior Notes mit Fälligkeit 2026 sowie 600 Millionen US-Dollar an 8,375% Senior Secured Notes mit Fälligkeit 2028 einzulösen, einschließlich der damit verbundenen Prämien, Gebühren und Kosten. Die Einlösung ist abhängig vom Abschluss des Note-Angebots.
Die Notes werden ausschließlich an qualifizierte institutionelle Käufer gemäß Regel 144A und an Nicht-US-Investoren gemäß Regulation S angeboten und werden nicht im Rahmen des Wertpapiergesetzes registriert.
Positive
- Restructuring $1.8B of debt with longer maturity (2032)
- Refinancing higher-cost debt (8.375%) with lower-rate notes (6.750%)
Negative
- Increased interest rate on $1.2B portion from 5.875% to 6.750%
- Additional transaction premiums and fees required for refinancing
Insights
This $1.8 billion senior notes offering represents a strategic debt refinancing move by NCLC. The new notes, priced at 6.750% and due 2032, will replace existing debt with higher interest rates – the 5.875% 2026 notes ($1.2 billion) and 8.375% 2028 secured notes ($600 million). While the new interest rate is higher than the 2026 notes, it’s notably lower than the 2028 secured notes being retired.
The refinancing achieves three key objectives:
- Extended maturity profile by pushing out debt from 2026/2028 to 2032
- Simplified capital structure by consolidating two note issues into one
- Potentially reduced secured debt burden by retiring secured notes
For retail investors: Think of this like refinancing a mortgage – NCLC is essentially taking out a new loan to pay off existing loans, extending the payment timeline and potentially getting better terms. The successful pricing suggests institutional investors remain confident in NCLC’s creditworthiness despite industry headwinds.
The successful placement of $1.8 billion in notes demonstrates strong market confidence in NCLH’s credit profile. The offering’s structure reveals sophisticated liability management – by consolidating multiple debt tranches into a single issuance, NCLH is streamlining its debt stack while extending maturities. The weighted average cost of the retired debt is approximately 6.71%, making this refinancing roughly cost-neutral despite the challenging rate environment.
A important detail: the retirement of secured notes could free up collateral, enhancing financial flexibility. This transaction strengthens NCLH’s liquidity runway through 2032, providing important operational breathing room as the cruise industry continues its post-pandemic recovery trajectory. The timing is opportunistic, executing before potential market volatility in an election year.
MIAMI, Jan. 07, 2025 (GLOBE NEWSWIRE) — NCL Corporation Ltd. (“NCLC”), a subsidiary of Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH), announced today that it has priced $1,800 million aggregate principal amount of its 6.750% senior notes due 2032 (the “Notes”), which were offered in a private offering (the “Notes Offering”) that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”).
The offering of the Notes is expected to close on January 22, 2025, subject to customary closing conditions. We intend to use the net proceeds from the Notes Offering, together with cash on hand, to redeem $1,200.0 million aggregate principal amount of the 5.875% Senior Notes due 2026 (the “2026 Senior Notes”) and $600.0 million aggregate principal amount of the 8.375% Senior Secured Notes due 2028 (the “2028 Senior Secured Notes”), together with any accrued and unpaid interest thereon, and to pay any related transaction premiums, fees and expenses. The redemption of the 2026 Senior Notes and the 2028 Senior Secured Notes will be conditioned upon the consummation of the Notes Offering.
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 and interest rate of NCLH’s new senior notes offering?
NCLH’s subsidiary NCL is offering $1,800 million in senior notes with a 6.750% interest rate, due in 2032.
When will NCLH’s new notes offering close?
The notes offering is expected to close on January 22, 2025, subject to customary closing conditions.
How will NCLH use the proceeds from the 2032 senior notes?
The proceeds will be used to redeem $1,200M of 5.875% Senior Notes due 2026 and $600M of 8.375% Senior Secured Notes due 2028, plus related fees and expenses.
Who is eligible to purchase NCLH’s new senior notes?
The notes are only offered to qualified institutional buyers under Rule 144A and non-U.S. investors under Regulation S.
