Norwegian Cruise Line Holdings says it is “well-positioned” to weather the coronavirus crisis after securing more than $2 billion in new financing.
The owner of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises said the funding consisted of the issuing of bonds, a public share offering and investment by private equity firm L Catterton, the latter of which was first announced yesterday.
In a statement, NCLH said that once the transactions were complete, it expected to have approximately $3.5 billion of liquidity which “significantly strengthens the company’s financial position and liquidity runway.”
It said NCLH was now “positioned to withstand well over 12 months of voyage suspensions”, with the new financing lessening the management’s concern about the future of the company.
NCLH’s revenue has been squeezed as governments around the world imposed travel restrictions and locked down residents to stay to stem the spread of Covid-19.
The firm suspended cruises until at least June 30, furloughed about 20% of its workforce until July 31 and is burning about $110 million to $150 million a month during the suspension of operations by its 28 ships.
About half customers who have had cruises cancelled have requested cash refunds. Those who have accepted future cruise credits can use them until the end of 2022.