Norwegian Cruise Line Holdings (NCLH) – Get report He said he would sell $ 250 million in shares and $ 675 million in six-year senior guaranteed notes.
In the latest check, Norwegian shares fell 13% to $ 16.01.
The coronavirus pandemic has hit Norwegian and other cruise lines, keeping travelers at home. In addition, cruises were affected by coronavirus cases in March.
Norwegian cruises are closed until September.
Norwegian plans to use the funds from the stock offering used for general purposes.
Subscribers are expected to have the option to purchase up to $ 37.5 million of additional common stock.
JPMorgan Securities, Citigroup, Goldman Sachs, Barclays, Mizuho Securities and UBS are managing the share offering.
Regarding debt issuance, in addition to the $ 675 million mentioned above, Norwegian is also proposing to sell $ 250 million in five-year exchangeable senior notes. The notes will be senior general unsecured obligations.
Norwegian expects to use the net proceeds of the guaranteed notes and exchangeable notes to pay off its $ 675 million senior guaranteed revolving line of credit.
You will also use it to pay related transaction fees and expenses, with the rest of the net proceeds from general purpose offerings.
Norwegian operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises lines. That equates to 28 ships with 59,150 berths and more than 490 destinations worldwide.
The stock has fallen 73% to date. It has more than doubled its 52-week low above $ 7, set in mid-March.
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