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Safe For Now. Norwegian Cruise Line Secures $2.2 Billion in Survival Funds

REUTERS, MAY 6, 2020

May 6 (Reuters) – Norwegian Cruise Line Holdings Ltd has raised over $2.2 billion through debt and equity offerings, giving the cash-strapped cruise operator much-needed funds to survive extended voyage suspensions due to the COVID-19 pandemic.

The company warned on Tuesday that it might not have funds to keep its business running for the next 12 months. With the new fund raising, the company now expects to have $3.5 billion in liquidity, enough to last it for more than 12 months of voyage suspensions.

The pandemic has halted international travel and effectively shut down the cruise ship and airline industries, with companies now bleeding cash and scrambling for new funds to ride out the slowdown that could last longer than expected.

Norwegian previously said it planned to restart cruise operations on July 1.

Norwegian said the new cash injection of $2.23 billion, comprises $400 million in new equity, $1.43 billion in bond offerings and a $400 million investment from private equity firm L Catterton.

The company said it now expects to now have about $3.5 billion of liquidity.

(Reporting by Uday Sampath in Bengaluru; Editing by Saumyadeb Chakrabarty)(c) Copyright Thomson Reuters 2019.

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