Daily News: January 4, 2019

JPMorgan Chase Agents $1.6B Term Loan for Norwegian Cruise Line


Norwegian Cruise Line Holdings amended and restated its existing senior secured credit facility with JPMorgan Chase Bank acting as both administrative and collateral agent. The amendment repriced the company’s $875 million revolving credit facility and replaced its $1.299 billion term A facility with a new $1.633 billion facility.

According to the related 8-K filing, Mizuho Bank joined JPMorgan Chase as a joint lead arranger on the transaction.

The amendment extended the maturity dates for both the revolver and term A loan to January 2, 2024 or an earlier date set 91 days prior to the final maturity date of the company’s 4.75% senior notes due 2021 if said notes have not been repaid and free liquidity does not exceed the aggregate principal amount of outstanding notes by at least $50 million.

Additionally, the applicable margin under both the new term loan and the revolver was reduced by 25 basis points compared to the previous facility and will be determined by reference to a total leverage ratio, with an applicable margin of between 1.75% and 1.00%, with respect to Eurocurrency loans, and between 0.75% and 0.00%, with respect to base rate loans. The initial applicable margin for borrowings under both new facilities is 1.50% for Eurocurrency borrowings and 0.50% for base rate borrowings.

Norwegian Cruise Lines used proceeds from the term loan to prepay all outstanding amounts under the existing term B loan facility.

Norwegian Cruise Line Holdings operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. Its brands offer itineraries to over 510 destinations around the world, including Europe, Asia, Australia, New Zealand, South America, Africa, Canada, Bermuda, Caribbean, Alaska and Hawaii, with a combined fleet of approximately 20 ships and over 45,000 berths.