Norwegian Cruise Line Completes Strategic Balance Sheet Optimization Transactions

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Norwegian Cruise Line Holdings Ltd. announced today that it has closed on a series of related balance sheet and cash flow optimization transactions initiated last week, according to a press release.

The net result of these strategic transactions is significantly favorable for the company and its shareholders as it reduces annual interest expense, lowers leverage, extends the company’s debt maturity profile and increases its liquidity, the company said.

A key benefit of these related transactions is that assuming the newly issued 1.125% exchangeable senior notes due 2027 are settled entirely in cash, at the company’s election, the company will benefit from a net reduction in its diluted shares outstanding of approximately 5.2 million shares.

“The completion of these balance sheet and cash flow optimization transactions represents an important milestone for our Company as we have now taken the first significant step forward in executing on our post-crisis financial recovery plan,” said Mark A. Kempa, Executive Vice President and Chief Financial Officer of Norwegian Cruise Line Holdings.

“We are focused on maximizing value for all of our key stakeholders and we believe this transaction delivers long-term benefits from multiple perspectives by reducing our annual interest expense, reducing our outstanding debt, extending our debt maturities and increasing liquidity, all while providing additional flexibility to limit future shareholder dilution. While our ability to clearly and fully communicate the significant and expected multiple benefits of these transactions to our valued shareholders was limited by contractual and legal restrictions prior to completion of these transactions, we are pleased to now be able to convey the highlights of the transactions to our various stakeholders.”

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