Norwegian sails into luxury with Prestige purchase

AP News
Posted: Sep 02, 2014 10:07 AM

NEW YORK (AP) — Norwegian Cruise Line is sailing into the luxury sector, spending about $3 billion in cash and stock to acquire the high-end Prestige Cruises International.

It's a huge deal for Apollo Global Management LLC, which acquired a majority stake in Prestige in 2007. Apollo also owns about 20 percent of Norwegian, which saw its shares rocket 13 percent higher before the opening bell Tuesday.

Should certain performance targets be reached, Apollo would be due another $50 million in cash according to terms of the sale.

The two other big Norwegian shareholders, Genting Hong Kong Ltd. and TPG Capital, have already signed off on the deal.

Prestige operates Oceania and Regent Seven Seas cruise lines. The deal will give Norwegian access to Prestige's eight ships and its big-ticket vacation packages. Norwegian owns 13 ships.;

Norwegian Cruise Line Holdings Ltd., based in Miami, values the deal at $3.025 billion when debt is included.

The deal is expected to close in the fourth quarter.