NCLH Raises US$2.2 Billion, Enough To Cover A Year Of Cruise Suspensions
Anna Kroupina, Open Jaw
Norwegian Cruise Line Holdings announced today that it successfully secured US$2.2 billion of additional liquidity through debt and equity offerings, giving the cash-strapped cruise operator much-needed funds to survive through the COVID-19 pandemic. Norwegian says the additional liquidity is enough to last it for more than a year.
Yesterday, NCLsaid in a securities filingthat it had “substantial doubt” about its ability to remain afloat unless steps were taken to increase liquidity.
However, Norwegian says the additional capital alleviates those concerns. The cruise operator expects to have a total of approximately US$3.5 billion of liquidity, contingent on completion of the transactions.
"This significantly strengthens the company’s financial position and liquidity runway and it now expects to be positioned to withstand well over 12 months of voyage suspensions in a potential downside scenario," said Norwegian Cruise Line in a press release.
"While this is not the company’s base case expectation, the company has taken a swift and proactive approach to protect its future given the significant uncertainty and unknown duration of the COVID-19 global pandemic."
Anna Kroupina Journalist
Anna is OJ's newest member and she joins the team as a writer/reporter. She co-writes the daily news and covers events. Although she's new to the industry, pursuing a career path in travel/tourism has been a goal since her first family road trip to the Florida Keys sparked a desire to discover the world and this exhilarating, fast-paced industry.