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Moody's rates Oceania Cruise loans B1, Caa1
Moody's Investors Service said it assigned a B2 corporate family rating, a B2 probability-of-default rating and a loss-given default assessment of LGD4 (50%) to Oceania Cruise Holdings, Inc., B1 ratings with loss-given-default assessments of LGD3 (41%) to the company's $25 million five-year senior secured first-lien revolving credit facility and $300 million six-year senior secured first-lien term loan and a Caa1 rating with a loss-given-default assessment of LGD6 (92%) to its $75 million seven-year senior secured second-lien term loan.
The bank facilities will be used to finance Oceania's acquisition of three identical cruise ships that it currently leases. The borrowers under the bank facility will be three newly formed subsidiaries that will each own one of the ships, the agency said. The new companies are owned by an intermediate holding company, Oceania Cruises, Inc., that is in turn owned by Oceania Cruise Holdings.
Moody's said the ratings reflect Oceania's small market share, reliance on a small fleet of ships and limited operating history.
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