Tag Archives: NCL

Norwegian Viva to Undergo Enhancements During Crossing; Venues Closed

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According to a letter sent to booked guests, the Norwegian Viva will be undergoing significant enhancements during its upcoming trans-Atlantic crossing.

Set to depart from Puerto Rico on April 7, 2024, the 19-night repositioning cruise is scheduled to end in Lisbon, Portugal.

According to Norwegian Cruise Line, several spaces onboard will be closed as the upgrades take place during the voyage.

“As part of our commitment to continuously offer extraordinary vacation experiences for our guests around the world, and to uphold a consistent world-class product across our fleet, Norwegian Viva will be undergoing some enhancements during your cruise,” the company said in a prepared statement.

“The Speedway Bar will be converted into an all-new Entourage, offering teenagers aged 13 to 17 a dedicated area for them to meet and engage with others their age. Additionally, we will be making some upgrades to the Galaxy Pavilion, the virtual reality complex,” Norwegian continued.

“To complete these enhancements, The Bull’s Eye, Tee Time (mini-golf), The Stadium, The Wave and a section of the Galaxy Pavilion will be closed during your voyage. However, if we are able to reopen these venues during this voyage, we will communicate accordingly,” the company added.

Norwegian Cruise Line also highlighted Norwegian Viva’s remaining entertainment and activities offerings.

“Rest assured, there will still be plenty of activities available to entertain you during your days at sea, including the Speedway, The Drop, The Rush and the Aqua Park,” the company explained.

“We sincerely apologize for this unexpected event and want to assure you that our dedicated team is committed to ensuring you have an unforgettable vacation experience.”

Built by the Fincantieri shipyard in Italy, the Norwegian Viva entered service for Norwegian Cruise Line in August 2023.

The Prima-class vessel is currently wrapping up its first winter program in the Caribbean ahead of a second summer season in the Mediterranean.

S&P Upgrades Norwegian Cruise Line Credit Rating

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Norwegian Bliss in Ponta Delgarda, Azores photo credit Spacejunkie2 Flickr Account

Norwegian Cruise Line Holdings today announced that S&P Global Ratings (S&P) has recently upgraded NCLC’s (NCL Corporation, a subsidiary of Norwegian Cruise Line Holdings) issuer credit rating and issue-level ratings.

NCLC’s issuer credit rating has been upgraded to B+, marking a notable improvement in the company’s creditworthiness, according to a press release.

In addition, S&P has raised the issue-level ratings on NCLC’s existing secured and unsecured debt. The company’s senior secured debt ratings were raised to BB/BB- and its unsecured debt rating was upgraded two notches to B.

S&P highlighted several factors for the upgrade, including NCLC’s current forward-booked position, increased capacity, occupancy recovery, and higher pricing providing good revenue and cash flow visibility for 2024. In addition, S&P noted that the Company’s leverage will benefit from higher revenue, EBITDA, and cash as it generates a full year of operations from its 2023 ship deliveries, without incurring incremental ship delivery debt in 2024.

Further enhancing its financial position, on March 7, 2024, the company successfully completed the refinancing of its $650 million backstop commitment. This commitment has been refinanced from a secured to an unsecured commitment, and as part of this refinancing, the company has repaid its $250 million 9.75% senior secured notes due 2028, eliminating its highest interest rate debt.

“The upgraded ratings are an important recognition of the strength of our business and our ability to reduce leverage,” commented Mark A. Kempa, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd. He continued, “Our recent refinancing, which reduces interest costs while releasing the related collateral, is a clear demonstration of our commitment to de-levering and improving our balance sheet.”

NCLH: Measured Cruise Capacity Growth at 28%

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A key cornerstone of Norwegian Cruise Line Holdings’ long-term strategy is measured capacity growth, said Harry Sommer, president and CEO, speaking on the company’s year-end and fourth quarter earnings call.

He pointed to the company’s newbuild pipeline of five ships and its 2023 to 2028 capacity growth, which represents 28 more supply for the company’s trio of brands in Norwegian, Oceania and Regent.

That averages out to a compound annual growth rate of five percent, he advised.

“Historically, capacity growth has led to outsized revenue and EBITDA growth and we expect this capacity growth to be no different and deliver meaningful top and bottom line growth,” Sommer noted.

“We believe that these measured capacity additions will enable us to further enhance our long-term profitability and continue to significantly strengthen our balance sheet while providing guests new and innovative experiences,” he said.

“We continue to experience strong and resilient customer demand across all three of our brands. The strong momentum we saw in 2023 has continued into 2024 with an all-time high booked position and pricing buoyed by strong wave season demand. This has led to some of the best booking weeks in the company history, which began with successful Black Friday and Cyber Monday promotions.

“In general, we continue to see healthy demand across all markets, brands and products.”