NCL have sold Norwegian Dream, Majesty to Louis Lines & PoAh is still up for sale

**Ally** · 04-13-2008, 07:01 AM

Quote:

NORWEGIAN Cruise Line, the Miami operator that is currently undergoing a watershed transformation of sorts, appears close to consummating the sale of three of its cruiseships to smaller European brands, including the disposal of the two oldest ships in the NCL fleet.

The ships involved are understood to be the 1999-built Pride of Aloha, which is being withdrawn from NCL’s ill-starred US-flag cruise operation in Hawaii, and the 1992-built pair of Norwegian Dream and Norwegian Majesty.

Pullmantur Cruises is understood to be the purchaser involved in the Pride of Aloha transaction, at a rumoured price of $300m-$310m. The transaction was understood to be on subjects on Friday, with subjects expected to be lifted next week.

Cyprus’ Louis Group is believed to be pursuing the acquisition of the other two ships, in what would be the largest deal in the history of the East Mediterranean’s largest cruise operator. A specialist broker familiar with the deal put the price agreed for the Norwegian Dream and Norwegian Majesty en bloc at $378m.

NCLdid not return calls made by Lloyd's List on Friday.

US sources suggested that Louis had yet to line up the finances required to bankroll such an ambitious expansion, but was in hot pursuit of investors and bankers.

It is also believed that Louis’ interest in the pair, at a price seen in some quarters as “top-dollar”, caused a potential rival bid on the ships by International Shipping Partners/Clipper Cruises to die away.

Louis has previously affirmed intentions to renew its 13-vessel fleet with newbuildings or younger tonnage, while negotiating the sale of some of the older vessels.

For NCL, the putative deal comes when the company is seeking to rebound from heavy losses suffered in its US-flag operations.

The company now markets its brand as possessing the “youngest fleet on the planet”. Simultaneously, private equity group Apollo Global Management has ploughed $1bn into the company for a 50% stake and a board majority.

This investment is being seen among certain circles as a rich investor seeing the long-term upside in an “undervalued” operation. Apollo last week filed for an initial public offering of up to $417.5m in New York, with the prospectus detailing a philosophy of “contrarian” and “distress-sale” investments.

NCL’s Hawaii operation took root in 2003 through a special Congressional dispensation and started business with three ships, the Pride of Hawaii, Pride of Aloha and Pride of America. However, cost and, allegedly, competition caused the operation to haemorrhage cash, and it is now down to one ship.

NCL announced a year ago that it would withdraw the Pride of Hawaii from Hawaii, citing competition from foreign-flag ships. Last month, just days after actually removing the Pride of Hawaii, NCL disclosed plans to remove the Pride of Aloha from the islands in May.

NCL also announced significant redundancies in its Miami head office in March, as a direct result of the Hawaii debacle.

Colin Veitch, NCL chief executive, insisted to Lloyd’s List in Miami in March that the decision to pare the Hawaii business back to one ship had brought the entire operation back to viable scale, and, “for now”, the Pride of America would constitute a profitable one-ship profit centre in Hawaii.

NCL has decided not to invest in new ships through to 2010, when a pair of newbuildings in its ambitious F3 class would hit the water, Mr Veitch revealed. The Pride of Hawaii¸ renamed the Norwegian Jade, and the Pride of Aloha were to be moved to NCL’s European and international itineraries to serve as de facto fleet expansion in the meantime.

F3 is the project name for the new class under construction at Aker Yards France, the Chantiers de l’Atlantique shipyard in Saint-Nazaire. Designed to propel NCL into the “mega-class” league of its bigger rivals Carnival and Royal Caribbean, the F3 class will surpass NCL’s Jewel class as its largest vessels by over 50,000 gt.

NCL close to offloading cruiseship trio - Lloydslist.com

**Ally** · 04-23-2008, 09:53 AM

Quote:

Louis plc announced it has reached an agreement with Star Cruises for the purchase of two of its cruise ships, namely the “Norwegian Dream” and the “Norwegian Majesty” for a total amount of 380 mln US dollar (Euro 240 mln).
According to the terms of the agreement, the two cruise ships will be chartered back to Star Cruises until November 2008 for the “Norwegian Dream” and December 2009 for the “Norwegian Majesty”. The funding has been undertaken by DVB Bank, the global specialist transportation finance bank.
''The purchase of these two cruise ships constitutes the most important renewal and upgrading of the Louis Cruise Lines fleet in its twenty-two year old history and at the same time it further enhances the company’s leading position in the Eastern Mediterranean cruise market,'' Louis says in a press release.
The 51.000 tons Norwegian Dream is 230 meters long and was built in France in 1992; in 1998, it underwent a lengthening operation. It can accommodate 2.156 passengers in its 875 spacious cabins and suites, 695 of which are outside and 48 with private balcony. The cruise ship features ten decks, six restaurants, eleven lifts, two swimming pools, Spa & Fitness facilities, a two-tiered show lounge, casino, library as well as an array of bars and other public areas.
The 41.000 tons Norwegian Majesty is 207 meters long and it was built in Finland in 1992. In 1999, the vessel underwent an extensive rebuilding, lengthening and refurbishment and now it is a new generation cruise ship, which can accommodate 1.790 passengers in its 731 spacious cabins and suites, 481 of which are outside. The cruise ship features nine decks, five restaurants, six lifts, three swimming pools, Spa & Fitness facilities, an amphitheatrical show lounge, casino, library as well as a large number of other public areas.
''This strategically important agreement implements the previously announced company policy for upgrading its fleet by adding new generation cruise vessels of higher capacity which fit the company’s profile of services,'' Louis concludes.

Financial Mirror