Norwegian Cruise Line talks $800 million exchangeable notes at 1.125%-1.625%, up 37.5%-42.5%

Chicago, Nov. 15 – NCL Corp. Ltd., a subsidiary of Norwegian Cruise Line Holdings Ltd., announced that it plans to sell $800 million of exchangeable senior notes due 2027, according to a press release.

The offer will come with a 13-day greenshoe for an additional $120 million of notes.

A market source noted that talk is for a coupon of 1.125% to 1.625% and an initial exchange premium of 37.5% to 42.5%.

The notes are exchangeable into cash, ordinary shares or a combination at the issuer’s election.

If the option to exchange into shares is exercised, the notes will be converted into series A preference shares of NCL Corp. and then will immediately and automatically be exchanged for a number of ordinary shares.

Proceeds will be used to repurchase a portion of the 6% exchangeable senior notes due 2024 via privately negotiated transactions with a number of current noteholders. Remaining proceeds will be used for general corporate purposes.

Barclays, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are working as bookrunners for the Rule 144A offering.

The notes will be guaranteed by the parent.

NCL Corp. is a Miami-based cruise line.

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