Goldman Sachs-led transactions
A series of capital markets transactions led by Goldman Sachs to raise approximately $2bn launched Tuesday were upsized to gross proceeds of $2.225bn — $2.4bn if the underwriters exercise their full overallotment options.
The upsizing was due to significant demand across all three offerings. The transactions include an offering of $400m in common stock, up from $350m; $750m in exchangeable senior notes, up from $650m; and $675m senior secured notes, up from $600m. Also, a placement of up to $400m in exchangeable notes was arranged with an affiliate of L Catterton.
On completion, $3.5bn total liquidity
Contingent on completion of the transactions, NCLH expects to have approximately $3.5bn of liquidity. This significantly strengthens the company’s financial position, and NCLH now expects to be positioned to withstand well over 12 months of voyage suspensions in a potential downside scenario.
Twelve no-sail months is not the company's base case expectation. However, the greater liquidity protects NCLH's future given the significant uncertainty and unknown duration of the COVID-19 pandemic.
When the transactions are completed, the additional liquidity — NCLH said — will alleviate management’s worry, flagged in a filing, about the company’s ability to continue as a going concern for the next 12 months.