Norwegian Cruise Line upsizes term loan A, downsizing term loan B

By Sara Rosenberg

New York, Oct. 30 – Norwegian Cruise Line Holdings Ltd. lifted its incremental term loan A to $600 million from $450 million and trimmed its seven-year term loan B to $350 million from $500 million, according to a market source.

Price talk on the term loan B is Libor plus 350 basis points to 375 bps with a 0.75% Libor floor and an original issue discount of 99.

The incremental term loan A pricing is Libor plus 225 bps.

J.P. Morgan Securities LLC, Barclays and Deutsche Bank Securities Inc. are the lead banks on the senior secured deal.

Proceeds will be used to help fund the acquisition of Prestige Cruises International Inc. for $3,025,000,000, including the assumption of debt.

Also for the acquisition, the company has received a commitment for $780 million of senior unsecured bridge loans and plans to issue about 20.3 million equity shares or $670 million to Prestige shareholders.

Other funds for the transaction will come from cash on hand.

Closing is expected in the fourth quarter, subject to regulatory approvals and other customary conditions.

Norwegian Cruise Line is a Miami-based cruise company. Prestige is the parent company of Oceania Cruises and Regent Seven Seas Cruises.

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