NCL gets $260 million of three-year terms loans at Libor plus 80 bps

By Angela McDaniels

Tacoma, Wash., May 16 – NCL Corp. Ltd. entered into a credit agreement on Wednesday that provides for $260 million of term loans due May 15, 2022, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is Libor plus 80 basis points.

The term loans will be repaid in semiannual amounts equal to $37.44 million, with the balance payable at maturity.

NCL may voluntarily and permanently repay the loans, in whole or in part, at any time, subject to payment of breakage fees.

NCL will be required to prepay outstanding amounts under the credit agreement upon the sale or total loss of the Norwegian Jewel vessel.

The credit agreement is guaranteed by Norwegian Jewel Ltd. and secured by a first-priority perfected security interest in the equity of Norwegian Jewel Ltd., a first-lien ship mortgage on the Norwegian Jewel vessel and by first-priority assignments of certain interests related to the Norwegian Jewel vessel.

The term loans drawn under the credit agreement will be used for general corporate purposes, including to repay all outstanding debt under Norwegian Epic, Ltd.’s loan agreement dated Sept. 22, 2006, which was then terminated on Wednesday.

Bank of America, NA is the administrative agent.

NCL is a subsidiary of Norwegian Cruise Line Holdings Ltd., a Miami-based cruise company.

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