Norwegian Cruise Line Holdings Ltd. (NCLH, Financial) has successfully completed a significant financial maneuver involving the exchange of senior notes and equity offerings. On April 7, 2025, NCL Corporation Ltd. (NCLC), a subsidiary of Norwegian Cruise Line Holdings Ltd., finalized the exchange of $353,876,000 in aggregate principal amount of its 5.375% Exchangeable Senior Notes due 2025. These were exchanged for newly issued 0.875% Exchangeable Senior Notes due 2030, along with a cash payment of $64,005,553 plus accrued interest.
The newly issued 2030 Notes are senior unsecured obligations of NCLC and are guaranteed by Norwegian Cruise Line Holdings Ltd. on a senior unsecured basis. These notes will accrue interest at a rate of 0.875% per year, payable semi-annually, and will mature on April 15, 2030. The exchange allows holders to convert their notes into cash or ordinary shares of the company, with an initial exchange rate set at 38.1570 ordinary shares per $1,000 principal amount of 2030 Notes.
In conjunction with this exchange, Norwegian Cruise Line Holdings Ltd. completed two registered direct equity offerings, raising funds through the sale of 2,708,533 ordinary shares at $19.06 per share in the first offering, and 649,565 ordinary shares at the same price in the second offering. The proceeds from these equity offerings, along with cash on hand, were used to fulfill the cash payment obligation of the note exchange.
These strategic financial actions are part of Norwegian Cruise Line Holdings Ltd.'s ongoing efforts to optimize its capital structure and enhance financial flexibility. The company continues to navigate the complexities of the financial markets with a focus on long-term growth and stability.
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