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Norwegian Cruise Boosts Bond With Lure of Double-Digit Yield

  • Junk bond increased to $675 million from $600 million
  • Company seeks to raise about $2 billion from new financing
The Norwegian Cruise Line Holdings Ltd. Norwegian Bliss cruise ship
Photographer: Tim Rue/Bloomberg
Updated on

Norwegian Cruise Line Holdings Ltd. sold a larger-than-expected $675 million of junk bonds that have a pledge on the company’s vessels and islands as it seeks to raise as much as $2 billion from a broader financing to survive the travel industry shutdown.

The cruise line operator priced the four-year secured bonds, which were increased from $600 million, at a coupon of 12.25% and a discount of 99 cents on the dollar for an all-in yield of 12.575%, according to people with knowledge of the transaction. The bond was earlier offered with a coupon of 12.25% to 12.5% with a discount between 98.5 to 99, the people said, asking not to be identified because the details are private.