Norwegian Cruise Line talks $650 million four-year exchangeable notes at 5.75%-6.25%, up 20%-25%

By Abigail W. Adams

Portland, Me., May 5 – NCL Corp. Ltd., a subsidiary of Norwegian Cruise Line Holdings Ltd., plans to price $650 million of four-year exchangeable notes after the market close on Tuesday 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, Goldman Sachs & Co. LLC, Barclays, Citigroup Global Markets Inc., Mizuho Securities USA Inc. and UBS Securities LLC are active bookrunners for the Rule 144A offering, which carries a greenshoe of $97.5 million.

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

The notes are non-callable.

There is dividend protection.

Concurrently with the convertible notes offering, the company is also pricing a $600 million offering of senior secured notes due 2024 and a $350 million secondary offering.

Proceeds will be used for general corporate purposes.

NCL Corp. is a Miami-based cruise line.

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