Norwegian Cruise Line to price $250 million five-year exchangeables at 5.75%-6.25%, up 20%-25%

By Rebecca Melvin

New York, July 16 – NCL Corp. Ltd., a subsidiary of Norwegian Cruise Line Holdings Ltd., plans to price $250 million of five-year exchangeable notes with price talk for a coupon of 5.75% to 6.25% and an initial exchange premium of 20% to 25%, according to a market source.

J.P. Morgan Securities LLC is the left lead bookrunner of the Rule 144A deal, the source said.

The notes are exchangeable for series A preference shares of NCL Corp., which will be automatically exchangeable into Norwegian Cruise Line common shares.

The company is also selling a $250 million secondary offering of 13.5 million shares and $675 million of senior secured straight notes due 2026. The straight notes are secured by a first-priority interest in, among other things, one of the company’s vessels.

The proceeds of both issues will be used to repay a $675 million senior secured revolving credit facility and to pay any related transaction fees and expenses, with the remainder of proceeds earmarked for general corporate purposes.

The notes are non-callable.

NCL Corp. is a Miami-based cruise line.

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