Before Wave season officially began on Jan. 1, Norwegian Cruise Line Holdings' (NCLH) cumulative booked position was approximately 62% full for the calendar year, according to a recent filing with the U.S. Securities and Exchange Commission.
Those bookings were at higher prices than in 2019, according to the filing. NCLH ended the fourth quarter of last year with approximately 87% occupancy, up from 82% in Q3, and noted onboard revenue remained strong as occupancy increased.
The Q4 booking and occupancy numbers offer a preliminary look at the company's booked and financial position weeks before NLCH plans to officially report its year-end earnings. The company said it plans to report a net loss for Q4 2022, the full year of 2022 and Q1 2023.
Offering preliminary numbers, NCLH said it expects to report as much as $5 billion in revenue for 2022, compared with $600 million in 2021.
Company selling $600 million in secured notes
NCLH said it plans to sell $600 million in senior secured notes due in 2028 via a private offering. The proceeds from the offering will repay a portion of outstanding loans that come due in January 2024.
The notes will be secured by a first-priority interest in 13 of the company's ships that also secure NCLH's senior secured credit facility. The notes will be guaranteed by NCLH's subsidiaries that own the vessels that will secure the notes. NCLH has $13.7 billion in debt
NCLH, like other major cruise companies, incurred a heavy debt load to survive the pandemic. In Q4, the company cut 9% of shoreside staff while its contemporary brand, Norwegian Cruise Line, made several other cost-cutting moves, including reducing housekeeping services, increasing gratuities on its ships and cutting back entertainment. For instance, the line halted production of "Kinky Boots" on the Norwegian Encore in January.
"In our quest to provide the world's best ship-based entertainment, we are constantly evaluating our production shows, and as such, frequently add and remove programs to provide the best guest experiences," Norwegian Cruise Line said in a statement.
UPDATED: This report was updated on Jan. 20 to say that Norwegian Cruise Line Holdings increased the principal amount of secured notes to be issued to $600 million late Thursday, Jan. 19. NCLH had initially planned to issue $500 million.