Both intend to fully exercise their overallotment options. This provides additional liquidity to NCLH.
41.8m shares total
The underwriters of the upsized public offering of 36,363,636 ordinary shares at a price to the public of $11 per share plan to fully exercise their option to buy an additional 5,454,545 shares. This makes a total of 41,818,181 shares in the offering, including the options.
NCLH closed up at $11.61 Wednesday,
Goldman Sachs, Barclays Capital, Citigroup Global Markets, JP Morgan Securities, Mizuho Securities USA, Credit Agricole Securities (USA) and UBS Securities are acting as joint book-running managers.
$862m exchangeable notes including options
Similarly, the initial purchasers of NCLH's upsized private offering of $750m in 6% exchangeable senior notes due 2024 intend to fully exercise their option to buy an additional $112.5m exchangeable notes. So, including the options, the company will issue a total of $862.5m exchangeable notes.
These notes will be general senior unsecured obligations guaranteed by NCLH.
Exchange rate 25% premium to shares offering
The initial exchange rate per $1,000 principal amount of exchangeable notes is 72.7273 ordinary NCLH shares, equivalent to an initial exchange price of approximately $13.75 per share. This represents an approximate 25% premium to the price of NCLH’s concurrent offering of ordinary shares.
Both the shares offering and the exchangeable notes offering are expected to close Friday. NCLH intends to use the proceeds for general corporate purposes.
The offerings are part of the company's multi-pronged actions to boost liquidity to weather a potentially prolonged period of zero revenue during the global suspension of cruise operations due to the COVID-19 pandemic.