Norwegian Cruise Line Holdings has announced that it is to raise $2 billion in order to protect its future following the global coronavirus pandemic.

The company has launched a series of transactions in order to raise the capital, including a public offering of shares, issuing of bonds and a $400 million investment from private equity firm L Catterton.

According to a spokesperson, this will mean that subject to the completion of transactions, the company will have expected to raise approximately $3 billion of liquidity, which will strengthen its financial position and mean it can withstand “well over 12 months of voyage suspensions” should it need to.

Norwegian Cruise Line Holdings recently extended its suspension of global sailings for its three cruise brands, which include Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, until 30 June 2020.

This came shortly after the CDC informed the industry that it would be extending its no sail order for at least 100 days as it works to prevent the spread of coronavirus.

According to CNBC, the company announced on Tuesday that it may have to seek bankruptcy protection, having said there was “substantial doubt” about its ability to continue as a “going concern” as the coronavirus pandemic continues to impact the sector, as well as announcing that it expects to report a loss for the quarter ended 31 March and on the year.

A spokesperson for Norwegian Cruise Line Holdings said: “Today we launched a series of capital markets transactions, led by Goldman Sachs, which are expected to raise approximately $2 billion.

“These transactions are expected to consist of 1) $350 million public offering of common equity, 2) $650 million exchangeable senior notes offering, 3) $600 million senior secured notes offering and 4) $400 million private placement from global consumer-focused private equity firm L Catterton.

“Contingent on completion of the transactions, we expect to have approximately $3 billion of liquidity. This strengthens our financial position and ensures that we are positioned to withstand well over 12 months of voyage suspensions in a potential downside scenario.

“While this is not our expectation, we have taken a proactive approach to protect our future given the significant uncertainty and unknown duration of the Covid-19 global pandemic.”

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