Ambassadors Int'l in deal to buy American West Steamboat C
Under the agreement, Ambassadors Cruise
Group, a newly created division of Ambassadors
International, will pay $1 million for 100% of the shares of
American West. In addition, Ambassadors will pay $4.3 million of
American Wests outstanding debt and assume $41.5 million in
long-term, fixed-rate debt. Ambassadors will also throw in
250,000 shares of Ambassadors International, subject to
forfeiture if American West doesnt meet certain financial goals.
Most of American Wests staff is expected to stay on, according
to Ambassadors president and CEO, Joe Ueberroth.
The sale is expected to close in January, pending approval of
debt covenant amendments by the U.S. Dept. of Transportation. The new operation is expected to bring an additional $41
million in revenue to Ambassadors, according to Brian Schaefgen,
Ambassador's CFO.
The company will operate its 2006 schedule as previously
published and will look to make innovative itinerary changes in
2007. Ueberroth said Ambassadors is looking for complementary
acquisitions in the niche cruise segment.
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Source: Grouptravelblog
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