Norwegian Cruise Line Holdings Ltd today announced it successfully secured over $2 billion of additional liquidity through a Capital raising in response to impacts of the COVID-19 global pandemic on the Company and the cruise industry, including the temporary suspension of voyages, and to safeguard against a further downside scenario.
Capital Raising Details
Yesterday, the Company announced the launch of a series of capital markets transactions, led by Goldman Sachs, to raise approximately $2 billion.
The transaction has since been upsized to gross proceeds of $2.225 billion ($2.4 billion if the underwriters exercise their full overallotment options) due to significant oversubscription and demand across all three offerings.
The transactions consisted of:
- $400 million public offering of common equity
- $750 million exchangeable senior notes offering
- $675 million senior secured notes offering and
- $400 million private investment from global consumer-focused private equity firm L Catterton.
The separate investment by L Chatterton is rather interesting be it that they are the largest consumer-focused private equity firm in the world. L Catterton was formed through the partnership of Catterton, LVMH, and Groupe Arnault.
Contingent on completion of the transactions, the Company expects to have approximately $3.5 billion of liquidity. This significantly strengthens the Company’s financial position and liquidity runway and it now expects to be positioned to withstand well over 12 months of voyage suspensions in a potential downside scenario.
OTHER CURRENT CRUISE NEWS:
Carnival Cruise Line Plans to Phase Back into Service by August
Cunard Extends Pause to some Voyages until September
Princess Cruises Extends Pause of Global Operations Through June 30
Holland America Line Cancels All 2020 Alaska & European Voyages
At present Norwegian Cruise Line has currently suspended all cruise operations through all of June with the first sailings set to begin again from July 1, 2020. However due to the constant changing situation the suspension could be extended even further.