Norwegian Cruise Line Holdings is looking to sell $500m of its senior secured notes in a private offering to repay some outstanding term loans that will mature next year.

The New York-listed cruise major will back the notes with 13 of its 29 ships that also secure the company’s $875m senior secured revolving credit facility.

“We intend to use the net proceeds from the Notes Offering to repay a portion of the term loans outstanding under our senior secured credit facility that will become due in January 2024, including to pay any accrued and unpaid interest thereon, as well as related premiums, fees and expenses,” the company said on Thursday.

Frank Del Rio-led Norwegian also has a $1.5bn senior secured term loan facility.

These two loans make up a $2.38bn operating credit facility.

Norwegian currently has $12bn in long-term debt as a result of the pandemic that shut down the entire cruise sector for more than two years.

Norwegian still remains in the red as a result of the pandemic, having posted a third-quarter net loss of $295m in November, compared with a net loss of $846m for the same three months last year.

But revenue is growing significantly due to pent-up demand.

The Miami-based cruise giant reported revenue of $1.62bn versus $153m in revenue a year ago.

Chief executive Frank Del Rio has said that the company is still moving forward financially despite the losses.

“We are demonstrating continued positive momentum as we consistently reach key operational and financial milestones, including positive adjusted Ebitda in the third quarter for the first time since the start of the pandemic,” he said in November.

Norwegian said one of its goals is to return to adjusted net profit in 2023.