The factors described above, in particular the suspension of cruise voyages and decline in advanced bookings, as well as debt maturities and other obligations over the next year, and the fact that management’s plan to obtain additional financing has not yet been completed, have raised substantial doubt about the Company’s ability to continue as a going concern, as the Company does not have sufficient liquidity to meet its obligations over the next twelve months, assuming no additional financing or other proactive measures. As detailed above, the Company has taken, and anticipates taking, significant additional actions to increase liquidity, extend debt maturities, delay obligations and reduce operating costs. In addition, the Company has been evaluating a number of financing transactions that, if successful, would provide net proceeds which are anticipated to be sufficient to provide the liquidity necessary to satisfy its obligations over the next twelve months, including the maintenance of minimum levels of liquidity required by certain of our debt agreements. There can be no assurance, however, that the Company will be able to complete any such financing transaction, raise sufficient additional capital, finalize additional amortization deferrals or that revenues will increase rapidly enough to offset operating losses that will provide with sufficient liquidity to satisfy its obligations over the next twelve months or maintain minimum levels of liquidity as required by certain of our debt agreements.
NCLH 8-k Filing May 05, 2020
However there’s some positive here as well. NCLH also announced two new measures to help provide the liquidity necessary to meet the above concerns.
Private equity firm L Catterton has just baught into the cruise line holding company. L Catterton will invest $400m into the line by 2026 at a staggering rate of 7% for the first year (it decreases over time). L Catterton will get to place a member on the board of NCLH. There are also other requirements needed for this transaction to mature.
NCLH also place a notice to the SEC to announce they will issue more public offering ordinary shares. They plan on issuing $350m worth of new shares up to $402.5m. Five different banks will handle the tranasction.
These last two measures are a strong attempt by NCL to remain solvent. This can be seen as a positive.