Norwegian Cruise to Offer $250M Stock, 2 Senior-Note Series

Norwegian Cruise Line, which like its peers was hammered by the coronavirus travel shutdown, is offering stock and notes.
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Norwegian Cruise Line Holdings  (NCLH) - Get Report said it would sell $250 million of stock and $675 million six-year senior secured notes.

At last check Norwegian's shares were off 13% at $16.01.

Norwegian and other cruise lines have been hammered by the coronavirus pandemic, which has kept travelers at home. In addition, the cruise ships themselves were hit with coronavirus cases in March.

Norwegian’s cruises are shut down through September.

Norwegian plans to use the funds from the stock offering used for general purposes. 

The underwriters are expected to have an option to buy as much as $37.5 million of additional ordinary shares.

JPMorgan Securities, Citigroup, Goldman Sachs, Barclays, Mizuho Securities and UBS are managing the stock offering.

As for the debt issuance, in addition to the $675 million mentioned above, Norwegian also proposes to sell $250 million of exchangeable five-year senior notes. The notes will be general senior unsecured obligations.

Norwegian expects to use the net proceeds from the secured notes and the exchangeable notes to repay its $675 million senior secured revolving credit facility.

It will also use it to pay any related transaction fees and expenses, with the remainder of the net proceeds from the offerings to be used for general purposes.

Norwegian operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. That amounts to 28 ships with 59,150 berths and more than 490 destinations worldwide.

The stock has dropped 73% year to date. It has more than doubled off its 52-week low above $7, set in mid-March.