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NCLH closes $400m exchangeable notes offering with L Catterton

Norwegian Cruise Line Holdings closed its previously announced private placement of $400m in exchangeable senior notes due 2026 to an affiliate of L Catterton.

Among actions to boost liquidity

The offering is part of a number of actions NCLH has taken to boost liquidity in the current no-revenue environment.

These notes are at a rate of 7% for the first year, 4.5% payment-in-kind interest plus 3% per annum cash interest for the following four years and 7.5% in cash for the final year prior to maturity.

The net proceeds are expected to be used for general corporate purposes.

Exchange price $12.10/share

The notes will be general senior unsecured obligations guaranteed by NCLH and will be exchangeable at the holder’s option immediately preceding the maturity date. The initial exchange rate per $1,000 principal amount of the exchangeable notes is approximately 82.6446 ordinary shares of NCLH, which is equivalent to an initial exchange price of $12.10 per ordinary share, subject to future adjustment in certain circumstances.

On Thursday NCLH shares closed at $16.07, down 8.6%.

Entitled to nominate a director

L Catterton is entitled to nominate one member to the NCLH board so long as a minimum ownership threshold is met.

Goldman Sachs acted as placement agent to NCLH.

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