NEW YORK (TheStreet) -- Shares of Norwegian Cruise Line (NCLH) were falling 4.7% to $54.62 on heavy trading volume Wednesday after the cruise line priced the 20 million shares sold by selling shareholders in a secondary offering.
Norwegian priced the 20 million ordinary shares in the offering at $54.85 a share. The shares in the offering will be sold by funds affiliated with Apollo Global Management (APO), Star NCLC Holdings, and TPG Global.
The offering is expected to close on May 26. Norwegian will not receive any of the proceeds from the offering, as it is not selling any shares. The total number of outstanding shares of Norwegian will not change as a result of the offering.
About 4.3 million shares of Norwegian Cruise Line were traded by 3:31 p.m. Wednesday, above the company's average trading volume of about 1.4 million shares a day.
TheStreet Ratings team rates NORWEGIAN CRUISE LINE HLDGS as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NORWEGIAN CRUISE LINE HLDGS (NCLH) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and disappointing return on equity."