MIAMI - NCL Corporation Ltd., a subsidiary of Norwegian Cruise Line (NYSE:NCLH) Holdings Ltd. (NYSE:NCLH), has announced its intention to offer $315 million in senior notes due in 2030 in a private offering. The sale, which is exempt from the registration requirements of the Securities Act of 1933, targets qualified institutional buyers and non-U.S. investors.
The company plans to use the net proceeds from this offering, along with existing cash, to redeem an equivalent amount of its 3.625% Senior Notes due in 2024. This redemption is contingent upon the successful completion of the new notes offering.
The proposed notes will not be available for sale in the United States except to qualified buyers in compliance with Rule 144A under the Securities Act, or to non-U.S. investors under Regulation S. They will not be registered under the Securities Act or any state securities laws, and cannot be offered or sold without registration or an exemption from these requirements.
NCL Corporation's move to issue new senior notes is a financial strategy that involves replacing older debt with new debt, potentially to take advantage of different interest rates or other terms. The press release explicitly states that this announcement is not an offer to sell or to buy any securities and is not a solicitation for offers to purchase the 2024 Senior Notes.
The forward-looking statements within the press release, under the protection of the Private Securities Litigation Reform Act of 1995, indicate the company's expectations and projections but also acknowledge the presence of risks, uncertainties, and other factors that could affect actual results.
The information shared in this article is based on a press release statement from NCL Corporation Ltd. and does not include any speculative content regarding the potential impact or significance of the notes offering on the company's financial future or the broader cruise industry.
In other recent news, Norwegian Cruise Line Holdings has seen significant developments. The company announced the departure of Mr. Russell Galbut from its Board of Directors and his role as Chairperson, with Ms. Stella David succeeding him. This transition is said to be without any disclosed conflict. In financial news, the company's second-quarter performance exceeded both internal and market expectations. This strong performance led to the third consecutive upgrade of its full-year earnings guidance. The robust earnings before interest, taxes, depreciation, and amortization (EBITDA) of $587.7 million surpassed Mizuho's estimate of $565.8 million and the consensus estimate of $572.8 million. Analyst firms Macquarie and Mizuho Securities have reaffirmed their Outperform ratings on the company, with Macquarie raising its price target from $23 to $24, and Mizuho increasing its target from $24 to $25. These are the recent developments for Norwegian Cruise Line Holdings.
InvestingPro Insights
In light of NCL Corporation Ltd.'s recent announcement to offer $315 million in senior notes, investors may find the following InvestingPro Insights particularly relevant. Norwegian Cruise Line Holdings Ltd . (NYSE:NCLH) operates with a significant debt burden, which is a key consideration as it seeks to refinance its existing obligations. However, the company is expected to see net income growth this year, which could be a positive sign for potential investors evaluating the company's future profitability.
From a valuation perspective, NCLH is trading at a low P/E ratio relative to near-term earnings growth, with a current P/E ratio of 18.08 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 17.48. This could indicate that the stock is undervalued given its earnings potential. Moreover, analysts are optimistic about the company's earnings, with 10 analysts having revised their earnings upwards for the upcoming period. This collective positive outlook may be a factor for investors to consider when assessing the company's financial health.
On the financial metrics front, NCLH has a market capitalization of approximately $7.87 billion and has experienced a robust revenue growth of 26.87% over the last twelve months as of Q2 2024. The company's gross profit margin stands at a healthy 37.85%, reflecting its ability to maintain profitability amidst operational costs.
For those interested in further insights, there are additional InvestingPro Tips available on InvestingPro, which delve into other aspects of Norwegian Cruise Line Holdings Ltd.'s financial and operational performance.
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