Business Context and Reporting Period
Company: Norwegian Cruise Line Holdings Ltd.
Filing Type: Form 8-K (Current Report)
Date of Report: June 21, 2013
Event: Entry into Material Definitive Agreements and Termination of a Material Definitive Agreement.
Key Financial Metrics and Debt Activity
This filing details amendments to existing credit facilities and the termination of a specific loan agreement. No revenue, profit, or cash flow data is provided in this document.
- Interest Rate Reduction: Supplemental Deeds amended credit facilities to reduce interest rates to an adjusted LIBOR rate plus an applicable margin of 0.95%, plus customary mandatory costs.
- Terminated Loan: The "€40M Secured Loan Agreement" was terminated.
- Outstanding Principal: As of June 21, 2013, the aggregate outstanding principal on the terminated agreement was $16,826,810.88.
- Original Maturity: The terminated agreement was scheduled to mature on June 6, 2017.
Material Changes Versus Prior Period
The primary material change is the restructuring of debt terms for subsidiaries including Pride of Hawaii, LLC, Norwegian Jewel Limited, and Pride of America Ship Holding, LLC. These changes involve:
- Amending and restating Credit Agreements dated November 18, 2010.
- Amending and restating Secured Loan Agreements dated April 4, 2003, and April 20, 2004.
- Lowering the cost of borrowing via the new 0.95% margin structure.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on operational outlook, or specific risk factors beyond the standard disclosure of entering into material agreements. The transaction involves a syndicate of financial institutions including KFW IPEX-Bank GmbH, Commerzbank Aktiengesellschaft, and HSBC Bank PLC.
Important Facts for Investor Verification
- Verify the total reduction in interest expense resulting from the new 0.95% margin across all amended facilities.
- Confirm the terms under which the $16.8 million outstanding principal from the terminated €40M agreement was refinanced or repaid.
- Review the full text of the Supplemental Deeds to understand any new covenants or collateral requirements.
- Check subsequent filings for the impact of these debt modifications on the company's overall liquidity and leverage ratios.