NCL Corporation Ltd (”NCL”), parent company of Norwegian Cruise Line and NCL America, announced today that private equity group, Apollo Management, LP (”Apollo”), has agreed to make a $1 billion cash equity investment in NCL.
The new investment, in the form of common stock alongside NCL’s existing sole shareholder, Star Cruises (”Star”), is designed to strengthen NCL’s balance sheet and its ability to continue to expand what is fast-becoming the youngest fleet in the industry, and to evolve further the company’s successful Freestyle Cruising concept first introduced in 2000.
Under the terms of the proposed investment, which includes an agreement for additional future distributions to be made directly by NCL to Star, Apollo will become 50 percent owner of NCL and will name a majority of the NCL board with certain consent rights retained by Star. Star will retain all of its existing stock in NCL and will, like Apollo, be 50 percent owner of the recapitalized company.Star Cruises Chairman and CEO Tan Sri KT Lim, welcomed the new partner and remarked on the opportunities that lie ahead: “Apollo’s significant financial commitment in NCL’s common stock means we have an equal partner who believes in the business as much as we do. This is a powerful validation of what we have achieved so far and of our vision for the future. It is also truly the start of the next - and most exciting - chapter for this great company.”
The proceeds of the Apollo investment will be used to repay existing NCL indebtedness, greatly increasing the liquidity available to fund a continuation of the dramatic new building program that has seen the introduction of eight purpose-built Freestyle Cruising ships to the fleet in just six years. The NCL-owned fleet today (excluding four chartered ships) stands at 19,740 berths, with another 15,000 berths under construction and under option, including the new Norwegian Gem due for delivery at the start of October this year.
As part of Apollo’s investment in NCL, Apollo and Star have entered into a sub- agreement relating to NCL’s U.S. flagged Hawai`i operations under the NCL America brand (”NCLA”) providing for deferred consideration to be paid to Star by NCL in the future. The sub-agreement is designed to support the business of NCLA in the near term and permit NCLA time to realize the benefits of various measures recently implemented to raise revenue yields and to lower crew turnover and payroll costs. Taken together with the pre-money valuation implied by Apollo’s $1 billion payment for 50 percent of the expanded equity, this added element of the transaction implies a total enterprise valuation of NCL of approximately $4 billion.
Completion of the transaction is expected early in Q4 2007 and is subject to customary conditions, including regulatory approval, Star Cruises shareholder approval, and Star and NCL lender consents.
The completion of the transaction will constitute a change of control under NCL’s outstanding 10 5/8% senior notes and NCL expects to make a change of control offer at 101% after completion as required under the indenture governing the notes.
(0) Comments (Leave a Comment)Filed under: NCL America, Norwegian Cruise Line Posted by Michael on 08/14/07
The following statement was released today from NCL America in regards to Hurrican Flossie which is threatening the island of Hawaii:
NCL America is closely monitoring the path of Hurricane Flossie. The company has altered the current itineraries for Pride of Hawai’i and Pride of America to ensure the safety and comfort of our guests and crew. Pride of Hawai’i will be at sea today instead of calling in Hilo, Hawai’i. Pride of America will spend the day at sea tomorrow, Wednesday, August 15, instead of calling in Kona, Hawai’i. As of now, the company has not altered any other itineraries; however, NCL America continues to monitor the storm’s path and intensity. As always, the safety and security of our guests and crew is our number one priority.(0) Comments (Leave a Comment)
Filed under: NCL America Posted by Michael on 08/06/07
NCL is announcing that public areas throughout all NCL and NCL America ships are now smoke-free. This includes food venues, sports decks or jogging areas, and kid’s pool areas.
Cigarette smoking is still permitted in staterooms, and balconies as well as in the cigar bar on ships that feature one. NCL ships will continue to permit cigarette smoking in the onboard casino as well. Pipes and cigar smoking is permitting in the cigar bar or designated smoking lounge. Cigarette, pipe, and cigar smoking is also permitted outside on open decks.
(2) have commentedFiled under: NCL America, Norwegian Cruise Line Posted by Michael on 08/06/07
Oceania has announced their 2008/2009 Winter Collection, these new itineraries opened for booking on August 1st, and that very day Oceania setting a booking record.
Princess has announced their 2008/2009 slate of Caribbean Escapes offering itineraries on 7 ships. Further south, Royal Caribbean will be offering sailings from Colon, Panama on Enchantment of The Seas.
Majestic America has announced that Delta Queen will be retired next year.
Carnival Valor managed to hit a parking structure while mooring in New York, and somebody got a little too close to Queen Mary 2 as she moored in New York.
NCL is taking part in a unique program recycling used cooking oil and other oily wastes.
Port Everglades is negotiating with Royal Caribbean to have at least one of the two new Genesis class ships homeported in Fort Lauderdale.
This week we talk about being healthy while on your cruise, and staying healthy starts before you even leave.
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Filed under: Carnival Cruise Lines, Majestic America Line, NCL America, Norwegian Cruise Line, Oceania Cruises, Podcast, Princess Cruises, Royal Caribbean International Posted by Michael on 08/03/07
Furthering NCL’s continued commitment to the environment, NCL Corporation recently completed a first-of-its-kind initiative at the Port of Miami to recycle used cooking oil from Norwegian Jewel and Norwegian Pearl. Approximately 1,300 gallons of used cooking oil were offloaded and donated to an organic farmer in Vero Beach, Fla., who converted the oil to 870 gallons of usable bio-diesel for his farming equipment.
In Hawaii, all NCL and NCL America ships have been offloading their used cooking oil for recycling to bio-diesel. The company recycled approximately 40,000 gallons of used cooking oil last year in Hawaii.
In addition, NCL continues its oily residual recycling program in Alaska, Hawai`i, British Columbia, New York, Miami and Charleston where its residual oil is offloaded and often recycled. The program entails taking a waste product and converting it into a marketable product. This is done with enhanced management of the various types of oily residuals generated onboard and partnering with waste oil treatment facilities on land.
Waste oil on board is generated from several sources: fuel oil separation which removes contaminants and water from the fuel prior to combustion in the main engines; lube oil separation which removes impurities from the engine lubricants; the treatment of oily bilge water; spent lube oil from the main engines; and spent cooking oil.
In the past, the marine industry has commingled these waste streams in a “sludge’ tank onboard the ship. This “sludge” or oily waste is pumped ashore as a waste product for treatment and eventually recycled or it is burned aboard as a waste material. Instead of a waste product, NCL provides a marketable oil product directly to the secondary oil market via company partners like Peninsula Waste Water Services in Victoria, BC and Cliff Berry, Inc. in south Florida. This is accomplished by designating tanks on board, separating the various types of oils and installing new equipment to better filter/dewater these oily residuals. NCL’s partners on land provide oil transportation services and, most importantly, the criteria or specification for oily residues to be considered a marketable product in that region.
The used oil market has recognized high quality oily residuals generated by the marine industry as a viable product. These oils typically require no treatment and are sent as direct shipments into the marketplace; mainly as fuel for industrial processes.
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