NCLH Ship Financing Terms Amended; $680 Million In Amortization Payments Deferred Through March 31, 2022

[njhorseman]

NCLH filed this 8-K with the SEC today, February 23. 

 

http://www.nclhltdinvestor.com/static-files/c6e1b13e-c626-4a37-8cbe-cbe63fe59be1

 

It (in a mere 3439 pages!) details amendments to the financing agreements for various NCL , Oceania and Regent Seven Seas ships, deferring amortization payments totaling approximately $680 million through March 31, 2022, as well as amending certain covenants in the financing agreements.

[PelicanBill]

Wow. Thanks for finding that. Largest contract I've worked on was around 250 pages.  I can't imagine.

 

Looks like every ship in the brand is included, even the new Leonardos.

[snorkle lover]

I am not a lawyer. Could someone please. Plain what this all means.

Thank you

[njhorseman]

42 minutes ago, snorkle lover said:

I am not a lawyer. Could someone please. Plain what this all means.

Thank you

In the simplest terms they're being given more time to repay certain loans taken to build ships. I haven't bothered to attempt to read the details, but I would expect NCLH to eventually pay more than was owed under the prior loan terms in return for the payment deferral. 

[njhorseman]

1 hour ago, PelicanBill said:

Wow. Thanks for finding that. Largest contract I've worked on was around 250 pages.  I can't imagine.

 

Looks like every ship in the brand is included, even the new Leonardos.

I was looking to see if NCLH had filed their 2020 10-K , which is due any day now, and I ran across this filing.

Of course this isn't just a single contract. it involves multiple contracts with multiple previous amendments for multiple ships.  Hence the 3439 pages.

[snorkle lover]

Thank you for the explanation.

[Hawaiidan]

20 hours ago, PelicanBill said:

Wow. Thanks for finding that. Largest contract I've worked on was around 250 pages.  I can't imagine.

 

Looks like every ship in the brand is included, even the new Leonardos.

Well... it sounds like a congressional bill  4000+ pages.     Must be a peach of a legal bill.