By Kenneth Lim
Boston, March 29 - 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 a hurdle at 150% of the conversion price in the fourth and fifth year and are freely callable thereafter. They may be put in years five, 10 and 15.
The notes have dividend and takeover protection.
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.
| Issuer: | Ambassadors International Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Thomas Weisel Partners
|
| Amount: | $85 million
|
| Greenshoe: | $15 million
|
| Maturity: | April 15, 2027
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 25%
|
| Conversion price: | $55.94
|
| Conversion ratio: | 17.8763
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before April 20, 2010; callable subject to hurdle at 150% of conversion price from April 20, 2010 to April 15, 2012
|
| Puts: | April 15, 2012; April 15, 2017; April 15, 2022
|
| Pricing date: | March 28, after the close
|
| Settlement date: | April 3
|
| Distribution: | Rule 144A
|
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