Watson Farley & Williams (“WFW”) has advised Crédit Agricole Corporate and Investment Bank (“CACIB”) as an agent, SACE S.p.A and a syndicate of nine banks on pre and post-delivery loan facilities granted to Norwegian Cruise Line Holdings Ltd. (NCLH) for the acquisition of four cruise vessels currently under construction at Italian shipyard - Fincantieri S.p.A.
The loan facilities are backed by the Italian export credit agency - SACE S.p.A.
Decarbonisation efforts
Scheduled to be delivered by 2029, the four vessels form part of the most significant expansion of NCLH’s cruise fleet across its various brands and are expected to advance NCLH’s journey toward decarbonisation.
These new ship orders are expected to create a new class of vessels within their respective lines. NCLH’s Oceania Cruises line is set to deliver two 86,000 gross-ton ships, both with a capacity to accommodate 1,450 passengers, while the other two 77,000 gross-ton vessels will be joining the Regent Seven Seas Cruises fleet and will each be able to welcome 850 passengers.
NCLH operations
NCLH is a global cruise company that operates Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises
CACIB is a private commercial bank that ranks among the market pioneers in the shipping, real estate, renewables, and infrastructure sectors, both in France and internationally.
NCLH is a global cruise company that operates Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. With a combined fleet of 32 ships and approximately 66,500 berths, they offer itineraries to approximately 700 destinations worldwide.
The group expects to add 13 additional ships across its three brands through 2036, which will add approximately 41,000 berths to its fleet.
Advisory partners
The cross-border multidisciplinary WFW team that advised the lenders and SACE S.p.A was led by Finance Partners - Alexia Russell (Paris) and Mario D’Ovidio (Milan). They were assisted by Associates - Parit Patani (London), Isabella Roberts (Paris), Jihanne Flegeau-Kihal (Paris), Amelia Garavaglia (Milan), Giulia Chiarvesio (Milan), and Trainees Francois Hickel (Paris), James Fitzjohn (Paris) and Marta Lomuscio (Milan).
They were also supported by Partners - Daniel Pilarski (New York) and Richard Stephens (London) on the sanctions and tax matters of the transaction, and by Senior Associate - Alfredo Guacci Esposito (Milan) on the Italian tax aspects.
Financing for four next-gen cruise ships
Alexia commented, “We are delighted to have been instructed by our long-term clients on this major financing for four next-generation cruise ships representing a milestone for NCLH. Our team was able to bring both cross-border experience and unrivalled maritime sector expertise to the table to ensure the transaction closed smoothly for our clients.”
Promoting sustainable finance
Mario added, “We are pleased to have advised our clients on this ground-breaking financing for the European cruise industry and NCLH’s decarbonisation agenda, which is also significant for the Italian economy. This instruction reaffirms WFW’s commitment to promoting sustainable finance in the cruise sector.”
A team from Conyers led by Victor Richards and Joshua DeAllie advised the lenders and SACE S.p.A on local law matters. Hannaford Turner LLP advised NCLH.