Yesterday, the parent company to Norwegian Cruise Lines, Regent Seven Seas and Oceania Cruises, announced the launch of a series of capital markets transactions, led by Goldman Sachs, to raise approximately $2 billion.
The transaction has since been increased to $2.225 billion.
The transactions consisted of a $400 million public offering of common equity, a $750 million exchangeable senior notes offering, a $675 million senior secured notes offering and a $400 million private investment from global consumer-focused private equity firm L Catterton, which was confirmed last night.
As long as the transactions complete, NCLH expects to have approximately $3.5 billion of liquidity.
NCLH said in a statement: "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."
