NCL restates commitment letter for up to $1 billion notes in two parts

By Wendy Van Sickle

Columbus, Ohio, July 29 – NCL Corp. Ltd. entered into a $1 billion amended and restated commitment letter with several funds care of Apollo Capital Management, LP that amends and restates the commitment letter dated Nov. 1, 2021, according to an 8-K filing with the Securities and Exchange Commission.

Under the restated letter, the commitment parties have agreed to purchase $1 billion of notes.

NCL has the option to make up to two draws under the commitment facility, in which case it will issue to the parties a total of $450 million principal amount of 8% senior secured notes due 2025 and $550 million principal amount of 8% senior notes due three years after the issue date.

The secured notes must be issued prior to the unsecured notes, and the principal amount of secured notes issuable will be increased to the extent that NCL obtains an increase in obligations that may be secured by liens on collateral under the terms and conditions of NCL’s debt agreements, with the principal amount of unsecured notes decreased commensurately

If drawn, the secured notes will be subject to a quarterly duration fee of 1.5% and the unsecured notes will have a semiannual duration fee of 3%. There will be draw fees of 3% for the secured notes and 5% for the unsecured notes.

The expiration of the commitment facility was extended through March 31, 2023. NCL has not drawn on the facility.

NCL is a subsidiary of Norwegian Cruise Line Holdings Ltd., a Miami-based cruise company.

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