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NCLH hires Goldman Sachs as financing options are explored

Norwegian Cruise Line Holdings has reportedly hired experts at investment bank Goldman Sachs to explore financing options on its behalf. 

The parent of Norwegian Cruise Line, Regent Seven Seas Cruises and Oceania Cruises has tasked Goldman Sachs will looking into options which could include the sale of a stake in the company, according to a report from Reuters. 

It comes amid a global pause on cruise operations due to the coronavirus outbreak. 

The report suggests NCLH is considering a stake sale known as private investment in public equity (PIPE), with the company said to be in talks with several private equity firms. 

Goldman Sachs declined to comment and the Reuters report said NCLH did not immediately respond to a request for comment.

It comes after Carnival Corporation raised $6.25 billion by issuing new debt and equity to investors. It made a share offering to raise $3 billion and said it would issue $1.75 billion in senior convertible notes. It also commenced an underwritten public offering of $1.25 billion of shares of common stock and underwriters were being given an option purchase of up to $187.5 million additional shares.

Earlier this month it was announced that Saudi Arabia’s sovereign wealth fund had acquired a minority stake in Carnival Corp. The Public Investment Fund based in Riyadh disclosed that  it had taken an 8.2% shareholding in the world’s largest cruise company, estimated to be valued at around $370 million.

Royal Caribbean Cruises – parent of Royal Caribbean, Azamara, Celebrity Cruises and Silversea, also announced a $2.2 billion loan last month as it looked to shore up cashflow amid the pandemic.

On April 9, the US Centers for Disease Control and Prevention extended its ‘no sail order’ for all cruise ships for up to 100 days.

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