Norwegian Cruise Line Holdings Announces Note Exchange And Equity Offering

(RTTNews) - Norwegian Cruise Line Holdings Ltd. (NCLH) and its subsidiary, NCL Corporation Ltd., Wednesday have entered into agreements to exchange $285.4 million of NCLC's 5.375% Exchangeable Senior Notes due 2025 for an equal amount of newly issued 0.875% Exchangeable Senior Notes due 2030, along with a $51.6 million cash payment.

The cash payment will be funded by a registered direct offering of 2.7 million ordinary shares at $19.06 per share.

The transactions, expected to close around April 7, 2025, will leave $164.6 million of the 2025 Notes outstanding. They will have a neutral effect on the company's leverage while reducing fully diluted shares by 12.5 million.

The 2030 Notes, guaranteed by NCLH, will be senior unsecured obligations and may be exchanged under specific conditions before October 15, 2029, and freely afterward until maturity. NCLC will settle exchanges with cash for the principal amount and may use cash, shares, or a mix of both for any excess value. The initial exchange rate of 38.1570 shares per $1,000 principal reflects an exchange price of $26.21 per share, a 37.5% premium over the offering price.

NCHL is currently trading at $19.53 or 2.47% higher on the NYSE.