Norwegian Cruise Line Holdings right this moment introduced that S&P World Scores (S&P) has lately upgraded NCLC’s (NCL Company, a subsidiary of Norwegian Cruise Line Holdings) issuer credit standing and issue-level rankings.
NCLC’s issuer credit standing has been upgraded to B+, marking a notable enchancment within the firm’s creditworthiness, in keeping with a press launch.
As well as, S&P has raised the issue-level rankings on NCLC’s current secured and unsecured debt. The corporate’s senior secured debt rankings had been raised to BB/BB- and its unsecured debt score was upgraded two notches to B.
S&P highlighted a number of components for the improve, together with NCLC’s present forward-booked place, elevated capability, occupancy restoration, and better pricing offering good income and money circulation visibility for 2024. As well as, S&P famous that the Firm’s leverage will profit from greater income, EBITDA, and money because it generates a full 12 months of operations from its 2023 ship deliveries, with out incurring incremental ship supply debt in 2024.
Additional enhancing its monetary place, on March 7, 2024, the corporate efficiently accomplished the refinancing of its $650 million backstop dedication. This dedication has been refinanced from a secured to an unsecured dedication, and as a part of this refinancing, the corporate has repaid its $250 million 9.75% senior secured notes due 2028, eliminating its highest rate of interest debt.
“The upgraded rankings are an vital recognition of the power of our enterprise and our capacity to cut back leverage,” commented Mark A. Kempa, govt vp and chief monetary officer of Norwegian Cruise Line Holdings Ltd. He continued, “Our current refinancing, which reduces curiosity prices whereas releasing the associated collateral, is a transparent demonstration of our dedication to de-levering and bettering our steadiness sheet.”
