Norwegian Cruise Line Holdings announced today that it has secured more than $ 2 billion in additional cash in response to the impacts of the global COVID-19 pandemic on the business.
The company announced last week that it expects consumption of $ 100-150 million per month with most of its fleet on hold cold, giving the company more than a year of cash flow for the worst case scenario of zero income.
Yesterday, the company announced the launch of a series of capital markets deals, led by Goldman Sachs, to raise around $ 2 billion. The transaction has since grown to gross proceeds of $ 2.225 billion ($ 2.4 billion if the underwriters exercise all of their over-allotment options) due to significant oversubscription and demand on all three offers.
The transactions consisted of (1) a public offering of common shares of $ 400 million, (2) an offering of exchangeable senior notes of $ 750 million, (3) an offering of senior secured notes of 675 million dollars and (4) a private investment of $ 400 million from a global consumer-focused private equity firm. L Catterton.
In addition, a number of cost-cutting measures range from layoffs to deferred loan payments on company vessels.
Subject to the finalization of transactions, the company expects to have approximately $ 3.5 billion in cash.
This significantly strengthens the company’s financial position and liquidity trail and it now expects to be positioned to withstand more than 12 months of travel suspensions in a potential downside scenario, according to a press release.