Norwegian to Buy Prestige Cruises in $3b Deal

Posted by Eric Haun
Tuesday, September 02, 2014
Photo: Prestige Cruises

Norwegian Cruise Line Holdings Ltd (NCLH.O) said it would buy Prestige Cruises International Inc from its owner Apollo Global Management LLC (APO.N) in a $3 billion deal to expand its high-end luxury cruise offerings.

Shares of Norwegian Cruise, the world's third-largest cruise operator, were up 13 percent at $37.57 in early trading.

Prestige, which in January registered with U.S. regulators for an initial public offering, owns upper-premium cruise operator Oceania Cruises and luxury cruise operator Regent Seven Seas Cruises. The company operates eight ships, with about 6,500 berths.

Miami-based Norwegian Cruise operates 13 cruise ships in routes spanning North America, the Mediterranean, the Baltic, Central America and the Caribbean. The company, which operates cruise liners such as Norwegian Sky and Norwegian Spirit, had revenue of $2.57 billion in 2013, up 13 percent from 2012.

The $29 billion cruise industry is expected to benefit in the coming years from the rise of the middle class in emerging economies such as China and India. Companies are racing to position themselves as the cruise operators of choice for these new customers.

Apollo had a 20 percent stake in Norwegian Cruise as of June 30, according to a regulatory filing.

Prestige was created by Apollo Global in 2007 to hold its luxury cruise investments.

Reuters reported on Sunday that the two companies were in advanced talks for a merger.

The cash-and-stock deal includes the assumption of Prestige's debt.

Norwegian Cruise said it would finance the deal with existing cash, debt and through a stock offering of about 20.3 million shares.

Barclays, J.P. Morgan Securities LLC and Deutsche Bank are providing committed financing to Norwegian Cruise for the deal.

The deal will immediately add to earnings, and result in $25 million in initial savings, Norwegian Cruise said on Tuesday.

The company said it would also pay up to $50 million to Prestige shareholders upon achievement of certain 2015 performance metrics.

Genting Hong Kong Ltd and TPG Capital, two of the top shareholders of Norwegian Cruise, have agreed to the deal, Norwegian Cruise said.

Norwegian Cruise is being advised by Barclays, while Weil, Gotshal & Manges LLP is its legal adviser.

UBS Investment Bank is advising Prestige Cruises and Paul, Weiss, Rifkind, Wharton & Garrison LLP is its legal adviser.

(Reporting by Siddharth Cavale and Sruthi Ramakrishnan in Bangalore; Editing by Sriraj Kalluvila)

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Dittmann Named Chairman of SEA Europe

Kjeld Dittmann, the Managing Director of Lyngsø Marine A/S, is the new Chairman of the European Ships and Maritime Equipment Association (SEA Europe).    He succeeds Govert Hamers,

Ex-BP Engineer Deserves New Gulf Spill Trial -US Appeals Court

A former BP Plc engineer deserves a new trial on an obstruction of justice charge related to the 2010 Gulf of Mexico oil spill, a federal appeals court ruled on Tuesday.

Shipping Confidence at 7-year Low -Survey

Overall confidence levels in the shipping industry fell during the three months to May 2015 to a level equal to the lowest rating recorded in the past seven years,

Finance

Monopiles Terminal to Be Built in Rotterdam

Sif and Verbrugge to build terminal for offshore wind energy on Maasvlakte 2   Sif Group, Verbrugge International and the Port of Rotterdam Authority have signed

Shipping Confidence at 7-year Low -Survey

Overall confidence levels in the shipping industry fell during the three months to May 2015 to a level equal to the lowest rating recorded in the past seven years,

Teekay Sells FPSO, Announces Dividend Boost

Teekay Corporation to complete sale of the Knarr FPSO and announces dividend increase of 75 percent   Teekay Corporation announced today that its board of directors

News

Monopiles Terminal to Be Built in Rotterdam

Sif and Verbrugge to build terminal for offshore wind energy on Maasvlakte 2   Sif Group, Verbrugge International and the Port of Rotterdam Authority have signed

Motion Compensation Solution for Solan Field

Ampelmann provides access solution for commissioning of the Solan project in West of Shetland   Motion compensated access solutions developer Ampelmann informs

Dittmann Named Chairman of SEA Europe

Kjeld Dittmann, the Managing Director of Lyngsø Marine A/S, is the new Chairman of the European Ships and Maritime Equipment Association (SEA Europe).    He succeeds Govert Hamers,

Mergers & Acquisitions

SeaZip Offshore Service Commences Operation

Harlingen-based SeaZip Offshore Service has entered into a partnership agreement with Heerema Marine Contractors (HMC). HMC, the world's market leader in transporting,

ShipServ opens Singapore office

ShipServ, the leading marine and offshore marketplace with an expected annual trade of $3bn in 2015, has cemented its position in Asia with the opening of a new office in Singapore.

DPE is New Majority Shareholder in INTERSCHALT

Deutsche Private Equity GmbH (DPE) is set to become the new majority shareholder in INTERSCHALT maritime systems AG, the maritime software and services provider

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2025 sec (5 req/sec)