Moody’s rates NCL Finance note Caa1

Moody’s Investors Service said it assigned a Caa1 rating to NCL Finance, Ltd.’s planned $550 million of senior unsecured note issuance and placed it on review for possible downgrade.

NCL Corp.’s ratings are unchanged and remain on review for downgrade, including its B2 corporate family rating, B2-PD probability of default rating, B1 senior secured bank credit facility rating, B1 senior secured rating, and Caa1 senior unsecured rating. The company’s speculative grade liquidity rating of SGL-2 also remains unchanged.

NCL intends to sell $1.1 billion in new senior unsecured debt, which will be broken up into two tranches with one tranche a $550 million add-on to its 5 7/8% senior unsecured notes due 2026 issued by NCL, and $550 million of new unsecured notes issued by NCL Finance.

NCL and certain NCL operating subsidiaries will guarantee the new notes.

Proceeds will be used to, among other things, repay in full the about $450 million secured debt related to the Norwegian Jewel and Norwegian Pride credit facilities, with the balance to be used for general corporate purposes.

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