Correction: Norwegian Cruise Line story

Apollo Management LP has completed its $1 billion cash equity investment in the parent company of Norwegian Cruise Line, making the private equity group a 50 percent owner of the cruise operator.

Announced in August and completed Tuesday, the investment is in the form of common stock alongside NCL Corporation Ltd.'s previous sole shareholder, Star Cruises.

Apollo will name a majority of the NCL board with certain consent rights retained by Star Cruises. Star Cruises will keep 50 percent ownership and all of its existing stock in NCL.

NCL has said the move is designed to strengthen its ability to expand as it competes with larger rivals Carnival Corp. and Royal Caribbean Cruises Ltd. The cruise line said it plans a series of upgrades, including updated bedding in staterooms and an increased investment in food services of $50 million over a two-year period.

The investment also will be used to pay down debt and allow the cruise line to fund its shipbuilding program. NCL has introduced eight new ships in six years and added another ship, the Norwegian Gem, in October.

Apollo has made other forays into the cruise industry. It announced in December a deal to acquire Regent Seven Seas Cruises, a luxury cruise brand, from travel operator Carlson Cos. Apollo also closed a deal to invest $850 million in Oceania Cruises in April.

Star Cruises operates a combined fleet of 21 ships as the world's third largest cruise operator. NCL has 14 ships in service and under construction.

Source: RamblerNews