By Abigail W. Adams
Portland, Me., Feb. 11 – NCL Corp. Ltd., a subsidiary of Norwegian Cruise Line Holdings Ltd., priced $435 million of five-year exchangeable notes after the market close on Thursday at par at the rich end of talk with a coupon of 2.5% and an initial exchange premium of 52.5%, according to a company news release and a market source.
Price talk was for a coupon of 2.5% to 3% and an initial exchange premium of 47.5% to 52.5%, according to a market source.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Mizuho Securities USA Inc. were bookrunners for the Rule 144A offering, which carries a greenshoe of $65 million.
The notes are non-callable for three years and then subject to a 130% hurdle.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Concurrently, the company priced $1 billion senior secured notes due 2027 at par to yield 5.875% and $600 million senior notes due 2029 at par to yield 7.75%.
Proceeds from the offering will be used to redeem the outstanding 12.25% senior secured notes due 2024 and 10.25% senior secured notes due 2026 and make principal payments on maturing debt.
NCL Corp. is a Miami-based cruise line.
| Issuer: | NCL Corp. Ltd.
|
| Amount: | $435 million
|
| Greenshoe: | $65 million
|
| Issue: | Exchangeable senior notes
|
| Maturity: | Feb. 15, 2027
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Mizuho Securities USA Inc.
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Exchange premium: | 52.5%
|
| Exchange price: | $34.51
|
| Exchange rate: | 28.9765
|
| Call options: | Non-callable for three years and then subject to a 130% hurdle
|
| Pricing date: | Feb. 10
|
| Settlement date: | Feb. 15
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 2.5% to 3% and initial exchange premium of 47.5% to 52.5%
|
| Stock symbol: | NYSE: NCLH
|
| Stock price: | $22.63 at market close Feb. 10
|
| Market capitalization: | $9.43 billion
|
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