Silversea Cruises has increased a fundraising effort that is now seeking to grab $550m in a bond sale, Moody's Investor Service said Friday.
The credit ratings agency also announced that it hiked its rating of the Monaco-headquartered cruiseship owner as a result of positive changes to its capital structure.
Moody's said that Silversea is increasing its senior secured notes sale from the original $275m, with the added proceeds aimed at at refinancing a loan for the 596-berth Silver Muse.
Capital structure improvement
The refinancing also means that the company's notes will no longer be subordinate to the newbuilding loan.
That led Moody's to hike its rating on the bonds issued by Silversea Cruise Finance to B2 from B3, which still remains within Moody's "highly speculative" grade.
But the upgrade puts the notes' rating at the same level as Silvesea's corporate family rating.
Manfredi d'Ovidio-led Silversea is scheduled to take delivery of the luxury Silver Muse in April.
Earnings boost
Moody's said the ship will "greatly benefit earnings".
But the ratings agency says the company's earnings are still weak relative to interest expense, weighing on its overall rating.
"Silversea's B2 [corporate family rating] is also constrained by its weak [earnings befire interest and taxes] margins, small scale and narrow business profile which essentially focuses on the luxury and expedition segments of the cruising industry," the agency said.
