NCL Corporation is planning a $315 million senior notes sale through Investing.com

MIAMI – NCL Corporation Ltd., a subsidiary of Norwegian Cruise Line (NYSE:) Holdings Ltd. (NYSE:NCLH), announced its intention to offer $315 million of senior notes due 2030 in a private offering. The sale, which is exempt from the registration requirements of the Securities Act of 1933, is directed to qualified institutional buyers and non-US investors.

The Company plans to use all proceeds from this offering, as well as existing cash, to redeem an equal amount of its 3.625% Senior Notes due 2024. This release is subject to the successful completion of the new notes offering.

The proposed notes will not be available for sale in the United States except to qualified buyers in accordance with Rule 144A under the Securities Act, or to non-US investors under Regulation S. They will not be registered under the Securities Act or any government securities. laws, and shall not be given or sold without registration or exemption from these requirements.

NCL Corporation's move to issue new senior notes is a financial strategy that involves replacing old debt with new debt, which may carry different interest rates or other terms. The press release expressly states that this announcement is not an offer to sell or buy any securities and is not a solicitation of an offer to purchase the 2024 senior notes.

Forward-looking statements contained in press releases, under the protection of the Private Securities Litigation Reform Act of 1995, identify the company's expectations and assumptions but also acknowledge the existence of risks, uncertainties, and other factors that could affect actual results.

The information shared in this article is based on a press release from NCL Corporation Ltd. and does not include any speculative content regarding the potential impact or significance of the notes being offered on the financial future of the company or the wider tourism industry.

In other recent news, Norwegian Cruise Line Holdings has seen significant growth. The company announced the departure of Mr. Russell Galbut to the Board of Directors and his role as Chairman, and Ms. Stella David replaced him. This change is said to have no disclosed conflict. In financial terms, the company's second quarter performance exceeded both internal and market expectations. This strong performance led to the third consecutive upgrade to its full-year earnings guidance. Firm earnings before interest, taxes, depreciation, and amortization (EBITDA) of $587.7 million exceeded Mizuho's estimate of $565.8 million and the consensus estimate of $572.8 million. Analyst firms Macquarie and Mizuho Securities reaffirmed their Outperform ratings on the company, with Macquarie raising its price target from $23 to $24, and Mizuho upping its target from $24 to $25. . These are the latest developments for Norwegian Cruise Line Holdings.

InvestingPro Insights

Due to the recent announcement of NCL Corporation Ltd. of offering $315 million in senior notes, investors may find the following InvestingPro Insights particularly useful. Norwegian Cruise Line Holdings Ltd . (NYSE:NCLH) operates with a heavy debt load, which is an important consideration as it seeks to refinance its existing obligations. However, the company is expected to see more revenue growth this year, which could be a good sign for potential investors evaluating the company's future profitability.

From a valuation perspective, NCLH trades at a low P/E ratio relative to near-term earnings growth, with a current P/E ratio of 18.08 and an adjusted P/E ratio for the trailing twelve months from Q2 2024 of 17.48 . This may indicate that the stock is undervalued given its earnings potential. In addition, analysts are optimistic about the company's earnings, as 10 analysts have revised their earnings higher in the future. This positive outlook may be a factor that investors should consider when assessing a company's financial health.

On the financial metrics side, NCLH has a market capitalization of $7.87 billion and has experienced a strong revenue growth of 26.87% over the past twelve months from Q2 2024. The company's gross margin stands at a healthy 37.85%, which shows its strength. maintaining profitability within operating costs.

For those interested in more details, there are additional InvestingPro Tips available on InvestingPro, which delve into other aspects of Norwegian Cruise Line Holdings Ltd's financial performance.

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