Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH) stock gained by 0.31% at last close whereas the NCLH stock price declined by 8.75% in the pre-market trading session. Norwegian Cruise Line Holdings which manages the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands, is a significant global cruise company. These businesses offer itineraries to more than 490 destinations across the world, with a total fleet of 28 ships and roughly 60,000 berths.
NCLH stock’ Recent Update
Norwegian Cruise Line Holdings stated that a series of linked balance sheet and cash flow optimization activities that began last week has been completed. The total effect of these significant transactions benefits the Company and its shareholders by lowering yearly interest expenditure, lowering leverage, extending the Company’s debt maturity profile, and increasing liquidity. The Organization will benefit from a net decrease in its diluted shares outstanding of roughly 5.2 million shares if the freshly issued 1.125 percent exchangeable senior notes due 2027 are settled wholly in cash at the Company’s choice.
Following are the significant points from the optimization transaction:
- Issuance of $1,150 million in 2027 Exchangeable Notes with a total principal balance of $1,150 million, which contains the full exercise of the greenshoe option. The primary exchange rate per 1,000 principal amount of 2027 Exchangeable Notes is 29.6850 ordinary shares, which is roughly $33.69 per ordinary share, subject to change in certain situations.
- For roughly $1.4 billion, the company repurchased $715.9 million in aggregate principal amount of its 6.00 percent exchangeable senior notes due 2024.
- Issuance of 46,858,854 ordinary shares at a price of $23.64 per share to certain current holders of the 2024 Exchangeable Notes, generating net earnings of about $1.1 billion.
- The Company’s 12.25 percent senior secured notes due 2024 and $262.50 million aggregate principal amount of the Company’s 10.250 percent senior secured notes due 2026 will be redeemed using a portion of the net earnings from the issuing of the ordinary shares.