New Issue: Ambassadors prices $85 million of 20-year convertibles to yield 3.75%, up 25%

By Kenneth Lim

Boston, March 28 - Ambassadors International Inc. on Wednesday priced $85 million of 20-year convertible senior notes to yield 3.75% with an initial conversion premium of 25%.

There is an over-allotment option for a further $15 million.

Thomas Weisel Partners was the bookrunner of the Rule 144A offering.

The notes are non-callable for the first three years. They may be called subject to hurdle in the fourth and fifth year and are freely callable after that. They may be put in years five, 10 and 15.

The initial conversion price was set at $55.94 per share, representing an initial conversion ratio of 17.8763 shares per note.

Ambassadors, a Newport Beach, Calif.-based cruise and travel company, said it will use the proceeds to retire $60 million in seller financing expected to arise from its pending acquisition of Windstar Cruises and to fund general purposes.

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