Norwegian Cruise Line Holding (NCLH), the world’s third larges listed cruise shipping group, has hired Goldman Sachs, the investment bank, to raise equity through private investment in public equity (PIPE) deal, Reuters reports.
“Among the options Norwegian Cruise (Holding) is considering is a stake sale known as private investment in public equity (PIPE), the sources said. The company is in talks with several private equity firms about a PIPE deal, the sources added,” Reuters reported.
Commenting on the news, the UK based investment website The Motley Fool said such a deal would be quite similar to what Carnival Company & plc did recently, raising a huge equity stake from investors in early April.
“Of course, Carnival also raised even more in debt than it did in equity. In doing so, Carnival didn't dilute its shareholders as much, but the company carries a heightened risk due to its new debt burden,” the report said.
“Should Norwegian go the all-equity route, it might dilute shareholders even more, but it could be less risky than taking on lots of high-yield debt as Carnival has,” it continued.
