The proceeds from the increase in the term loan were used to prepay the entire outstanding principal amount of the company’s $350m senior secured term loan, resulting in no change to total outstanding debt.
Both the revolver and term loan bear interest at LIBOR plus an applicable margin of between 1.5% and 2.25%, depending on the company’s leverage ratio. The $350m senior secured term loan bore interest at LIBOR plus 3.25%.
The refinancing 'further builds on our foundation for the future by strengthening our liquidity profile and extending the maturity,' said Wendy Beck, evp and cfo of NCLH. 'Strong support from our bank syndicate enabled us to opportunistically upsize the transaction to prepay our $350m term loan with a facility that has more favorable rates, thereby reducing interest expense.