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. Get the more information at Leisure Group Travel, Source: Grouptravelblog