Strong demand for the debt and equity securities of Norwegian Cruise Line Holdings Ltd (NCLH) has removed fears the company expressed yesterday that it might not be able to continue as a going concern.
“Contingent on completion of the transactions, the Company expects to have approximately $3.5 billion of liquidity. 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.
“When the transactions are completed, the additional liquidity alleviates management’s concern about the Company’s ability to continue as a going concern for the next 12 months,” the Miami based listed company said.
The company on 5 May announced the launch of a series of capital markets transactions, led by Goldman Sachs, to raise approximately $2.00 billion.
”The transaction has since been upsized to gross proceeds of $2.225 billion ($2.4 billion if the underwriters exercise their full overallotment options) due to significant oversubscription and demand across all three offerings. The transactions consisted of (1) $400 million public offering of common equity, (2) $750 million exchangeable senior notes offering, (3) $675 million senior secured notes offering and (4) $400 million private investment from global consumer-focused private equity firm L Catterton,” NCLH stated.
