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Private Equity

Norwegian Cruise Lines Builds Liquidity with L Catterton

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L Catterton has provided $400 million in exchangeable notes to NCL Corporation (NCLC), a subsidiary of publicly traded Norwegian Cruise Lines (NCL).

Norwegian Cruise Lines (NYSE: NCLH) is a global cruise company which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. The company’s cruise itineraries range from a few days to 180-days calling on various locations, including destinations in Scandinavia, Russia, the Mediterranean, the Greek Isles, Alaska, Canada and New England, India and the rest of Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, South America, the Panama Canal, and the Caribbean. Norwegian Cruise Lines was founded in 1966 and is headquartered in Miami.

In addition to the new funds from L Catterton, NCL announced this morning that it has raised an additional $1.8 billion of capital comprised of $400 million in new equity and $1.4 billion in new bonds. NCL now has more than $3.5 billion of liquidity, which is enough for it to last for more than 12 months of voyage suspensions.

Norwegian Cruise Lines is the smallest of the big three cruise operators – behind Carnival Cruise Lines and Royal Caribbean Cruises – and suspended its operations in mid-March due to the COVID-19 pandemic. The Centers for Disease Control and Prevention last month extended its No Sail Order until July 24. Many cruise companies are now considering resuming North American cruises on a limited basis beginning August 1.

“The cruise industry has been very resilient over a long period of time, driven by strong secular tailwinds and a high level of guest satisfaction. People enjoy cruising, with many guests taking multiple voyages over time,” said Scott Dahnke, the global co-CEO of L Catterton. “The industry has overcome numerous challenges in the past, and we expect that the industry will rebound and prosper with even further enhancements to their already rigorous health and safety protocols in place in the future.”

The newly issued notes purchased by L Catterton are senior unsecured obligations of NCLC, guaranteed by NCLH, and are exchangeable at any time into preferred shares of NCLC and are automatically exchangeable into ordinary shares of NCLH. The notes are due in 2026 and accrue payment-in-kind interest of 7.0% for the first year; payment-in-kind interest of 4.5% and cash interest at 3.0% for the next four years; and cash interest at 7.5% in the final year.

“We are pleased to execute this agreement with L Catterton, the largest and most global consumer-focused private equity firm in the world,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Lines. “L Catterton is the ideal partner for our company as they recognize the remarkable resilience the cruise industry has demonstrated over the past 50 years, appreciate the long-term global demand for cruise vacations, and value our company’s long track record of growth, execution and success.”

Norwegian Cruise Lines has a combined fleet of 28 ships with more than 59,000 berths. The company has nine new ships on order which are scheduled for delivery through 2027, however the company expects delivery of the new vessels to be delayed as a result of COVID-19.

“Within the industry, the three brands of Norwegian Cruise Lines have carved out distinctive leadership positions in their respective markets, guided capably by Frank Del Rio and his exceptional management team,” added Mr. Dahnke. “We couldn’t be more excited to support the team at Norwegian as they work through this suspension of travel and begin to commence operations after their voluntary suspension of voyages.”

L Catterton invests from $50 million to $400 million of capital in consumer-focused companies. Areas of specific interest include food and beverage, retail and restaurants, consumer products and services, consumer health, and media and marketing services. The firm was founded in 1989 and has raised over $20 billion of equity capital across seven funds. L Catterton has 17 offices globally and is headquartered in Greenwich, Connecticut.

Goldman Sachs & Co. was the placement agent to Norwegian Cruise Lines on this transaction.

Private Equity Professional | May 7, 2020

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Source: https://peprofessional.com/2020/05/norwegian-cruise-lines-builds-liquidity-l-catterton/

Ecommerce

India’s richest man built a telecom operator everyone wants a piece of

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Reliance Jio Platforms secured $10.3 billion in recent weeks from Facebook and others

As investors’ appetites sour in the midst of a pandemic, a three-and-a-half-year-old Indian firm has secured $10.3 billion in a month from Facebook and four U.S.-headquartered private equity firms.

The major deals for Reliance Jio Platforms have sparked a sudden interest among analysts, executives and readers at a time when many are skeptical of similar big check sizes that some investors wrote to several young startups, many of which are today struggling to make sense of their finances.

Prominent investors across the globe, including in India, have in recent weeks cautioned startups that they should be prepared for the “worst time” as new checks become elusive.

Elsewhere in India, the world’s second-largest internet market and where all startups together raised a record $14.5 billion last year, firms are witnessing down rounds (where their valuations are slashed). Miten Sampat, an angel investor, said last week that startups should expect a 40%-50% haircut in their valuations if they do get an investment offer.

Facebook’s $5.7 billion investment valued the company at $57 billion. But U.S. private equity firms Silver Lake, Vista, General Atlantic, and KKR — all the other deals announced in the past five weeks — are paying a 12.5% premium for their stake in Jio Platforms, valuing it at $65 billion.

How did an Indian firm become so valuable? What exactly does it do? Is it just as unprofitable as Uber? What does its future look like? Why is it raising so much money? And why is it making so many announcements instead of one.

It’s a long story.

Run up to the launch of Jio

Billionaire Mukesh Ambani gave a rundown of his gigantic Indian empire at a gathering in December 2015 packed with 35,000 people including hundreds of Bollywood celebrities and industry titans.

“Reliance Industries has the second-largest polyester business in the world. We produce one and a half million tons of polyester for fabrics a year, which is enough to give every Indian 5 meters of fabric every year, year-on-year,” said Ambani, who is Asia’s richest man.

Source: https://techcrunch.com/2020/06/01/indias-richest-man-built-a-telecom-operator-everyone-wants-a-piece-of/

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Private Equity

Avista Capital, VHC Investco acquire Vision Healthcare NV

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Healthcare-focused private equity firm Avista Capital Partners and VHC Investco have acquired Vision Healthcare NV, in a

Source: https://www.altassets.net/private-equity-news/avista-capital-vhc-investco-acquire-vision-healthcare-nv.html

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Private Equity

OMERS appoints Blake Hutcheson as its president and CEO

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Canadian pension giant OMERS has appointed Blake Hutcheson as its new president and CEO, replacing Michael Latimer as CEO.

The appointment of Hutcheson supports OMERS “long-term plans for global expansion,” the firm stated. It also signals the end of its leadership transition.

In his new position, Hutcheson will be responsible for the overall leadership and performance of OMERS.

Prior to this role, he served as the president and chief pension officer for OMERS.

Hutcheson has also served as the president and CEO of Oxford Properties Group, and headed global real estate at Mount Kellet Capital Management.

Hutcheson said, “It is a privilege to lead this purpose-driven organization. I am blessed to be surrounded by an outstanding, world-class team of deeply committed senior executives who put the best interests of our members above all else.

“Together, we will position OMERS to meet current and emerging challenges, find new opportunities to grow and deliver on our promise to our members.”

Last year, former Uber executive Jambu Palaniappan joined OMERS Ventures as managing partner in London, to support its growth in Europe.

Earlier in the year, OMERS Ventures, the firm’s investment division, reportedly launched its debut transatlantic fund.

Copyright © 2020 AltAssets

Source: https://www.altassets.net/private-equity-news/omers-appoints-blake-hutcheson-as-its-president-and-ceo.html

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