Norwegian Cruise's NCL launches upsized $750 million 5.5-year notes at 10¼%

By Paul A. Harris

Portland, Ore., July 16 – NCL Corp., a subsidiary of Norwegian Cruise Line Holdings Ltd., launched an upsized $750 million offering of 5.5-year senior notes at 10¼% on Thursday, according to market sources.

The issue size increased from $675 million.

The deal launched 12.5 basis points through price talk in the 10½% area. Early guidance was in the 10¾% area.

The deal was heard to be playing to orders exceeding $2.5 billion, a trader said.

Final terms were expected on Thursday. However, they were unavailable at press time.

J.P. Morgan Securities LLC is leading the Rule 144A and Regulation S offer.

The notes come with three years of call protection.

The Miami-based cruise company is also shopping $250 million of five-year convertibles.

Proceeds from both the junk and the convertibles will be used to repay its $675 million senior secured revolver, with the remainder to be used for general corporate purposes.

NCL returns after having raised cash in both the junk bond and convertibles markets in early May when it sold $675 million of 12¼% senior secured bullet notes and $750 million of 6% convertibles, both of which mature in May 2024.

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