Norwegian Cruise Line Holdings
| Company type | Public |
|---|---|
| Industry | Cruise line |
| Founded | February 21, 2011 |
| Headquarters | United States |
Area served | Worldwide |
Key people | Frank Del Rio (President and CEO), Russell Galbut (Chairman) |
| Products | Cruises |
| Website | www |
Norwegian Cruise Line Holdings (NCLH) is a holding company headquartered in the United States with its legal domicile in Bermuda. It owns and operates three cruise line subsidiaries outright: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. Collectively, these brands position NCLH as the third-largest cruise operator worldwide. The company’s shares are publicly traded on the New York Stock Exchange.
History
Established on February 21, 2011, NCLH was formed as a Bermuda exempted company to facilitate a forthcoming initial public offering (IPO). At that time, Norwegian Cruise Line was controlled by a partnership consisting of Genting Hong Kong, Apollo Management, and TPG Capital. Following the January 2013 IPO and listing on Nasdaq, a corporate restructuring occurred whereby NCLH assumed full ownership of Norwegian Cruise Line, with previous stakeholders exchanging their interests for shares in NCLH.
Immediately post-IPO, public investors held 13.3% of NCLH stock, while Genting Hong Kong maintained 43.4%, Apollo owned 32.5%, and TPG held 10.8%. In subsequent years, these initial investors gradually divested through secondary share offerings. By the close of 2014, nearly half of NCLH’s equity was publicly held, with Genting, Apollo, and TPG controlling approximately 25%, 24%, and 7%, respectively. One year later, their combined stakes had diminished significantly: Apollo at 15.8%, Genting at 11.1%, and TPG at 2.4%. On December 3, 2018, both Apollo and Genting exited their remaining positions, concluding a decade-long association.
In September 2014, NCLH expanded by acquiring Prestige Cruise Holdings—the parent company of Oceania Cruises and Regent Seven Seas Cruises—in a transaction valued at $3.025 billion paid in cash and stock, which also included assumed liabilities.
On January 9, 2015, Frank Del Rio, co-founder of Oceania Cruises, took over as President and CEO from Kevin Sheehan.
NCLH was incorporated into the Nasdaq-100 index on December 14, 2015. Subsequently, it transitioned its listing to the New York Stock Exchange on December 19, 2017, which led to its removal from the Nasdaq-100.
In June 2018, Chairman Walter Revell resigned and was succeeded by Miami Beach real estate developer Russell Galbut.
By 2018, NCLH stood as the third-largest cruise operator globally, commanding a 9.5% share of passenger volume and generating 12.6% of industry revenue through its three cruise brands.
2019–2020 Covid-19 pandemic
On March 14, 2020, the U.S. Centers for Disease Control and Prevention (CDC) issued a No Sail Order affecting cruise operations. As a result, Norwegian Cruise Line Holdings halted all voyages across its three brands; all 28 vessels were docked and passengers disembarked by March 28, 2020. This suspension was later extended until June 30, 2020.
On May 5, 2020, NCLH filed with the Securities and Exchange Commission (SEC), expressing “substantial doubt” regarding its ability to continue operations over the following year due to liquidity constraints.
Remarkably, on the very next day, NCLH raised more than $2.2 billion in additional funding through oversubscribed capital market transactions: issuing $400 million in common stock priced at $11 per share; $675 million in senior secured notes maturing in 2024 with a 12.25% coupon; $750 million in exchangeable notes due in 2024 carrying a 6% interest rate convertible into common shares at $13.75 each; plus a $400 million private investment from an international private equity investor. On May 7, CEO Frank Del Rio confirmed that this capital infusion provided sufficient liquidity to sustain operations for up to eighteen months without revenue and anticipated resuming cruise activities later in the year.
Despite experiencing a year-to-date revenue decline of approximately 99% and reporting a net loss of $715 million during the second quarter—with cruises suspended until at least November—Del Rio forecasted that restarting full cruise operations would require six months or more once permitted.
The CDC extended its no-sail directive through December 31, 2020.
Subsidiaries
NCLH maintains full ownership of three distinct cruise lines: