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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

© Copyright 2017 Seatrade UBM (UK) Ltd. Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade UBM (UK) Ltd.

Anne Kalosh

US editor of Seatrade Cruise Review and Seatrade Cruise News

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