Norwegian Cruise Line Holdings Ltd. announced today that it has successfully secured an additional $2 billion in liquidity to address the impact of the global COVID-19 pandemic on the cruise industry, which has led to the voluntary suspension of its voyages; this will allow it to protect itself in the event of a potential further downturn.
The company announced Tuesday the activation of a series of capital markets transactions, led by Goldman Sachs, to raise approximately $2 billion. Since then, the transaction has increased to gross proceeds of $2.225 billion ($2.4 billion if the underwriters exercise their full allocation options) due to oversubscription and strong demand across the three offerings. The transactions consisted of: (1) a $400 million public offering of common stock; (2) a $750 million offering of senior interchangeable notes; (3) a $675 million offering of senior secured notes; and (4) a $400 million private investment from global consumer-focused private equity firm L Catterton.
Contingent upon completion of the transactions, Norwegian Cruise Line Holdings Ltd. expects to have approximately $3.5 billion in liquidity. These transactions will significantly strengthen the company's financial position and liquidity base, enabling it to maintain a solid position to face potential adverse scenarios such as the suspension of its voyages for more than 12 months. While more encouraging expectations are anticipated, Norwegian Cruise Line Holdings Ltd. has chosen to take swift and proactive action to protect its future operations, given the uncertainty surrounding the global COVID-19 pandemic and its potential duration. Once all transactions are completed, the additional liquidity will contribute to enhancing the company's ability to continue operating over the next 12 months.
