Norwegian Cruise Line shares down after exchangeable debt refinancing

Viking Holdings(Pembroke)

02/04/2025 14:22

** Shares of Norwegian Cruise Line Holdings NCLH.N down 1.7% at $18.73 premarket after co announces exchangeable debt refinancing transaction

** Miami, Florida-based co early Weds said subsidiary entered agreements with certain holders to swap ~$285.4 mln of 5.375% exchangeable notes due 2025 for $285.4 mln principal of newly issued 0.875% exchangeable notes due 2030, plus cash payment of ~$51.6 mln

** Concurrently, co issues ~2.7 mln shares to the holders in registered direct equity offering at $19.06 to make the cash payment

** Following the transactions, approx ~$164.6 mln of 2025 notes will remain outstanding, co said

** Barclays acted as placement agent for the equity offering

** NCLH shares on Tues closed at $19.06, giving co market value of ~$8.4 bln based on ~439.9 mln shares outstanding, per LSEG data

** In Feb, co posted Q4 profit beat, while its full year adj profit projection of $2.05 was 3 cents shy of consensus

** Shares of rival cruise operators Carnival CCL.N and Royal Caribbean RCL.N both down 2% before the bell; Travel and cruise firm Viking Holdings VIK.N also down 2% premarket

** Through Tues close, NCLH shares have lost 26% YTD. CCL down 22%, RCL down 10% and VIK off 8% in 2025 through Tues

 (Lance Tupper is a Reuters market analyst. The views expressed are his own)

 ((lance.tupper@tr.com 1-646-279-6380))