Pax Global Media
After successfully securing more than $2 billion USD of additional liquidity in response to impacts of the COVID-19 global pandemic on the company and the cruise industry, Norwegian Cruise Line Holdings Ltd. (NCLH) says it has enough cash on hand ($3.5 billion) for at least another 18 months, despite suspending global operations.
On May 5th, reports surfaced that Norwegian Cruise Line (NCL) was facing bankruptcy if it couldn't raise enough funds to cover existing financial commitments in the next 12 months.
Norwegian Cruise Line Holdings Ltd., which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands, is extending the suspension of all sailings across its fleet through June 30th, 2020 and plans to relaunch cruise operations with embarkations beginning July 1st, 2020.
On May 4th, the cruise company announced the launch of a series of capital markets transactions, led by Goldman Sachs, to raise approximately $2 billion. Contingent on completion of the transactions, the company expects to have approximately $3.5 billion of liquidity.
Speaking with Reuters, NCLH President and CEO Frank Del Rio said that he believes "the company is in a great financial position, has all the cash and liquidity needed to survive a prolonged lay-up and be in a position to come out strong."
NCLH will report its first quarter 2020 financial results on Thursday, May 14th, 2020.