NCLH completes refinancing involving early notes redemption

In a refinancing Norwegian Cruise Line Holdings redeemed all of its outstanding 4.625% senior notes due 2020 at a price of $1,044.41 per $1,000 of outstanding principal amount of notes.

The company used proceeds from a new Term B loan facility and cash on hand to redeem the notes.

NCLH repriced and increased its existing $750m revolving credit facility with a new $875m revolving credit facility. The company also repriced the approximately $1.412m principal amount outstanding under its existing senior secured Term A facility and added the new $375m Term B loan facility due 2021.

The applicable margin under the new Term A loan facility and new revolving facility is determined by reference to a total leverage ratio, with an applicable margin of between 2% and 1.25% with respect to euro currency loans and between 1% and 0.25% with respect to base rate loans.

The initial applicable margin for borrowings under the new Term A loan facility and new revolving facility is 1.75% for euro currency borrowings and 0.75% for base rate borrowings. The applicable margin under the new Term B loan facility is 1.75% with respect to euro currency loans and 0.75% with respect to base rate loans.

JPMorgan acted as lead arranger for the amendment to credit facilities that enabled the company to reprice the loans.

Posted 10 October 2017

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Anne Kalosh

US editor of Seatrade Cruise Review and Seatrade Cruise News

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