By Paul A. Harris
Portland, Ore., Feb. 10 – Norwegian Cruise Line Holdings Ltd. priced $1.6 billion of high-yield notes in two tranches in a Thursday drive-by, according to market sources.
The deal included $1 billion of five-year senior secured notes (B1/B+) that priced at par to yield 5 7/8%, at the tight end of yield talk in the 6% area. Initial guidance was 6¼% to 6½%.
The offering also included $600 million of seven-year senior unsecured bullet notes (Caa1/B-) that priced at par to yield 7¾%, at the tight end of the 7¾% to 8% yield talk. Initial guidance was 8¼% to 8½%.
The deal played to heavy demand, according to a sellside source, who added that it attracted over $7 billion of orders across both tranches, with an approximately even split between the secured and unsecured notes.
J.P. Morgan Securities LLC was the lead.
Proceeds plus a $435 million offering of exchangeable notes will be used to redeem all of the outstanding 12¼% secured notes and 10¼% secured notes and to make principal payments on debt with short-term maturities.
The issuing entity is NCL Corp. Ltd., a subsidiary of Norwegian Cruise Line Holdings, a Miami-based cruise company.
| Issuer: | NCL Corp. Ltd.
|
| Amount: | $1.6 billion
|
| Lead: | J.P. Morgan Securities LLC
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 18
|
| Distribution: | Rule 144 and Regulation S
|
| Marketing: | Drive-by
|
|
|
| Secured notes
|
| Amount: | $1 billion
|
| Issue: | Senior secured notes
|
| Maturity: | Feb. 15, 2027
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Call protection: | Two years
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Price talk: | 6% area
|
|
|
| Unsecured notes
|
| Amount: | $600 million
|
| Issue: | Senior notes
|
| Maturity: | Feb. 15, 2029
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Call protection: | Non-callable
|
| Ratings: | Moody’s: Caa1
|
| S&P: B-
|
| Price talk: | 7¾% to 8%
|
|
|
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