Quarterly report [Sections 13 or 15(d)]

Long-Term Debt

v3.26.1
Long-Term Debt
3 Months Ended
Mar. 31, 2026
Long-term Debt, Unclassified [Abstract]  
Long-Term Debt

7.   Long-Term Debt

In March 2026, we took delivery of Norwegian Luna. We had export credit financing in place for 80% of the contract price. The associated €1.0 billion term loan bears interest at a fixed rate of 1.91% per annum with a maturity date of February 25, 2038. Principal and interest payments are payable semiannually.

Exchangeable Notes

The following is a summary of NCLC’s exchangeable notes as of March 31, 2026 (in thousands):

Unamortized

Principal

Deferred

Net Carrying

Fair Value

  ​ ​ ​

Amount

  ​ ​ ​

Financing Fees

  ​ ​ ​

Amount

  ​ ​ ​

Amount

  ​ ​ ​

Leveling

2027 1.125% Exchangeable Notes (1)

$

192,037

$

(866)

$

191,171

$

186,654

Level 2

2027 2.5% Exchangeable Notes (1)

24,138

(119)

24,019

23,718

Level 2

2030 0.875% Exchangeable Notes

353,876

(2,680)

351,196

350,458

Level 2

2030 0.750% Exchangeable Notes

1,407,000

(24,044)

1,382,956

1,248,783

Level 2

(1) Classified within current portion of long-term debt as of March 31, 2026.

The following is a summary of NCLC’s exchangeable notes as of December 31, 2025 (in thousands):

Unamortized

Principal

Deferred

Net Carrying

Fair Value

  ​ ​ ​

Amount

  ​ ​ ​

Financing Fees

  ​ ​ ​

Amount

  ​ ​ ​

Amount

  ​ ​ ​

Leveling

2027 1.125% Exchangeable Notes

$

192,037

$

(1,097)

$

190,940

$

190,988

Level 2

2027 2.5% Exchangeable Notes

24,138

(149)

23,989

24,285

Level 2

2030 0.875% Exchangeable Notes

353,876

(2,829)

351,047

387,692

Level 2

2030 0.750% Exchangeable Notes

1,407,000

(25,139)

1,381,861

1,354,111

Level 2

The following provides a summary of the interest expense of NCLC’s exchangeable notes (in thousands):

Three Months Ended

March 31, 

2026

  ​ ​ ​

2025

Coupon interest

$

4,045

$

12,238

Amortization of deferred financing fees

1,703

2,481

Total

$

5,748

$

14,719

As of March 31, 2026, the effective interest rate is 1.64%, 3.06%, 1.07% and 1.14% for the 2027 1.125% Exchangeable Notes, 2027 2.5% Exchangeable Notes, 2030 0.875% Exchangeable Notes and 2030 0.750% Exchangeable Notes, respectively.

Debt Repayments

The following are scheduled principal repayments on our long-term debt including exchangeable notes, portions of which can be settled in NCLH ordinary shares, and finance lease obligations as of March 31, 2026 (in thousands):

Year

  ​ ​ ​

Amount

Remainder of 2026

$

718,364

2027

 

1,108,536

2028

 

1,343,762

2029

 

1,367,656

2030

 

3,822,427

2031

1,868,199

Thereafter

 

5,380,563

Total

$

15,609,507

Debt Covenants

As of March 31, 2026, we were in compliance with all of our debt covenants. If we do not continue to remain in compliance with our covenants, we would have to seek additional amendments to or waivers of our covenants. However, no assurances can be made that such amendments or waivers would be approved by our lenders. Generally, if an event of default under any debt agreement occurs, then pursuant to cross default and/or cross acceleration clauses, substantially all of our outstanding debt and derivative contract payables could become due, and all debt and derivative contracts could be terminated, which would have a material adverse impact on our operations and liquidity.