NCL Holdings raising more than 2 billion

Norwegian Cruise Line Holdings (NCLH)
said Wednesday that it had secured $2.23 billion in liquidity and that it is
“well-positioned to weather Covid-19 impacts” upon completion of the proposed

The transactions involve debt and equity. NCLH is doing a
$400 million public offering of common shares and is receiving a $400 million
private investment from private equity firm L Catterton. The company also will
receive $750 million in exchangeable senior notes and $675 million in senior
secured notes.

NCLH said the proceeds boost the company’s total liquidity to approximately $3.5 billion.

“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,”
NCLH said in a statement. 

NCLH said it does not expect a 12-month suspension of cruising
but “has taken a swift and proactive approach to protect its future given the
significant uncertainty and unknown duration of the Covid-19 global pandemic.” 

The news comes one day after NCLH disclosed “substantial
doubt” about its ability to continue “as a going concern” unless steps were
taken to increase liquidity.

NCLH said Wednesday that the additional liquidity
“alleviates management’s concern about the company’s ability to continue as a
going concern for the next 12 months.”

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