No-Moat Norwegian Cruise Lines Offers Peek at Worse-Than-Expected Profit; Shares Remain Undervalued

In an effort to address an evolving liquidity situation, no-moat Norwegian announced on Jan. 19 its intention to execute a private placement of $500 million to repay part of its term loan and credit facility (which will also extend its maturity date to 2025, from 2024). This move, along with $1 billion in cash and $1 billion in undrawn liquidity will help alleviate near-term cash concerns. Still, at last print, Norwegian has around $900 million in ship-related debt due in 2023 and $1.6 billion in amortizing loans scheduled to mature in 2024 (excluding the term loan and revolver), so continued flawless execution is paramount.