Apollo, NCL investment deal completed

NCL plans to use the cash infusion to buy eight new ships

A $1 billion infusion of private equity expected to bolster Hawaii's struggling cruise business for NCL Corp. Ltd. closed yesterday.

"With the Apollo investment, NCL is now in the strongest financial condition we have ever enjoyed in our 41-year history," said Colin Veitch, NCL Corp.'s president and chief executive officer.

The new investment from Apollo Management LP, in the form of common stock alongside the holdings of Star Cruises, previously NCL's sole shareholder, is designed to strengthen NCL's balance sheet and support its continuing expansion plans, Veitch said.

NCL has said that it also will use the proceeds of the Apollo investment to repay debt and help pay for its shipbuilding program, which calls for adding eight vessels to the fleet within the next six years.

As of closing, Apollo, through its affiliates NCL Investment Ltd. and NCL Investment II Ltd., has become a 50 percent owner of NCL and will name a majority of the NCL board of directors. Star Cruises, NCL's previous sole shareholder, has retained all of its existing shares and is also a 50 percent owner.