Norwegian Cruise Line Holdings expects to record a loss of almost $5bn for 2021 as the cruise industry fights to stay afloat in a pandemic that has gone on for two years.
The Frank Del Rio-led owner of 28 ships foresees a full-year deficit ranging from $4.4bn to $4.6bn, which is slightly higher than the $4bn loss recorded for 2020.
New York-listed Norwegian, which plans to report official earnings on 23 February, expects full-year revenue to come in at between $600m to $650m, half of the $1.3bn in revenue earned in the prior year.
Operating costs are anticipated to stay flat with 2020’s result of $1.7bn by staying within the range of $1.5bn to $1.7bn.
The Miami-based cruise major expects to record an adjusted Ebitda loss ranging from $1.6bn to $1.8bn for this year, compared to a $1bn deficit for 2020.
Norwegian forecasts $2.7bn in liquidity for 2021 that includes an undrawn $1bn loan facility versus $3.3bn in liquidity for 2020.
The owner disclosed the preliminary earnings on Friday in a regulatory filing, as part of setting the pricing for a private offering of $2.04bn of senior notes announced on Thursday.
Norwegian is offering $1bn in secured notes due 2027 at 5.875%, $600m in unsecured notes maturing in 2029 at 7.75% and $435m in exchangeable notes due 2027 at 2.5%.
The exchangeable note offering is expected to close on Tuesday, and the other two offerings are set to end on 18 February.
Norwegian intends to use the proceeds from the offerings to buy back $439m in 12.25% secured notes due in 2024 and $487m in 10.25% notes due 2026.
