Long-Term Debt

6 Months Ended

Jun. 30, 2026

Debt Disclosure [Abstract]

7. Long-Term Debt

In March 2026, we took delivery of Norwegian Luna. We had export credit financing in place for 80% of the contract price. The associated €1.0 billion term loan bears interest at a fixed rate of 1.91% per annum with a maturity date of February 25, 2038. Principal and interest payments are payable semiannually.

Exchangeable Notes

The following is a summary of NCLC’s exchangeable notes as of June 30, 2026 (in thousands):


					Unamortized Debt
					Discount,
		Principal			including Deferred			Net Carrying			Fair Value
		Amount			Financing Fees			Amount			Amount			Leveling
2027 1.125% Exchangeable Notes (1)		$	192,037		$	(6,113)		$	185,924		$	188,400		Level 2
2027 2.5% Exchangeable Notes (1)			24,138			(800)			23,338			23,854		Level 2
2030 0.875% Exchangeable Notes			353,876			(50,805)			303,071			371,191		Level 2
2030 0.750% Exchangeable Notes			1,407,000			(295,354)			1,111,646			1,304,753		Level 2

(1)	In May 2026, NCLC elected to irrevocably fix the settlement method to cash settlement for all exchanges of the 2027 1.125% Exchangeable Notes and 2027 2.5% Exchangeable Notes, pursuant to the applicable indentures.

The following is a summary of NCLC’s exchangeable notes as of December 31, 2025 (in thousands):


					Unamortized Debt
					Discount,
		Principal			including Deferred			Net Carrying			Fair Value
		Amount			Financing Fees			Amount			Amount			Leveling
2027 1.125% Exchangeable Notes		$	192,037		$	(10,740)		$	181,297		$	190,988		Level 2
2027 2.5% Exchangeable Notes			24,138			(1,397)			22,741			24,285		Level 2
2030 0.875% Exchangeable Notes			353,876			(56,747)			297,129			387,692		Level 2
2030 0.750% Exchangeable Notes			1,407,000			(324,902)			1,082,098			1,354,111		Level 2

The following provides a summary of the interest expense of NCLC’s exchangeable notes (in thousands):


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2026			2025			2026			2025
Coupon interest		$	4,103		$	8,567		$	8,148		$	20,805
Amortization of discount and deferred financing fees			20,750			24,436			40,913			53,267
Total		$	24,853		$	33,003		$	49,061		$	74,072

As of June 30, 2026, the effective interest rate is 6.28%, 7.88%, 5.04% and 6.45% for the 2027 1.125% Exchangeable Notes, 2027 2.5% Exchangeable Notes, 2030 0.875% Exchangeable Notes and 2030 0.750% Exchangeable Notes, respectively.

Debt Repayments

The following are scheduled principal repayments on our long-term debt including exchangeable notes and finance lease obligations as of June 30, 2026 (in thousands):


Year		Amount
Remainder of 2026		$	477,842
2027			1,105,695
2028			1,340,922
2029			1,364,816
2030			3,949,587
2031			1,865,359
Thereafter			5,363,524
Total		$	15,467,745

Debt Covenants

As of June 30, 2026, we were in compliance with all of our debt covenants. If we do not continue to remain in compliance with our covenants, we would have to seek additional amendments to or waivers of our covenants. However, no assurances can be made that such amendments or waivers would be approved by our lenders. Generally, if an event of default under any debt agreement occurs, then pursuant to cross default and/or cross acceleration clauses, substantially all of our outstanding debt and derivative contract payables could become due, and all debt and derivative contracts could be terminated, which would have a material adverse impact on our operations and liquidity.