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NCLH begins drawing from credit facilities totaling $1.55bn

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Norwegian Cruise Line Holdings has begun borrowing from two revolving credit facilities that total $1.55bn.

Financial flexibility amid coronavirus uncertainty

This is a precautionary measure, the company said, to increase its cash position and facilitate financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 outbreak.

As previously disclosed, NCLH is party to an $875m revolving credit facility dated Jan. 2, 2019, and maturing Jan. 2, 2024, and a $675m revolving credit facility dated March 5, 2020, and maturing on March 4, 2021. JPMorgan Chase Bank is administrative agent and collateral agent for both, and other lenders are involved in each.

Beginning on March 12, the cruise operator borrowed under both facilities. The proceeds are to be used for working capital, general corporate or other purposes permitted by the lending agreements.