Norwegian Cruise Line Holdings is offering to sell more than $2bn in senior notes coming due pay off $1bn of higher-interest debt.
The Frank Del Rio-led owner of 28 ships has proposed to offer $1bn in secured notes due in 2027, $600m in unsecured debt due in 2029 and $435m in exchangeable notes due in 2027.
Initial buyers of the exchangeable notes have a two-week option to buy up to an additional $65m of the debt securities.
Norwegian did not disclose the interest rates on the new notes.
The Miami-based cruise major plans to use some of the money from these private offerings to redeem $439m in secured notes bearing a coupon rate of 12.25% and due in 2024.
Another $487m will be spent to claw back notes due in 2026 that carry a 10.25% rate.
Norwegian paid off $236m of the 12.25% notes and $263m of the 10.25% notes in November after selling 46.9m in shares for $1.1bn.
That same month, the New York-listed outfit also issued $1.15bn in exchangeable senior notes due 2027 with a rate of just 1.125%.
And repurchased $716m of exchangeable senior notes, with a coupon rate of 6% and due 2024, for about $1.4bn.
Norwegian, which announced on Wednesday that it plans to have its entire fleet sailing in the early part of the second quarter, held debt of $12.4bn as of 30 September.
