Ambassadors plans exchange offer for 3.75% convertible senior notes

By Jennifer Chiou

New York, Sept. 11 - Ambassadors International, Inc. announced a planned restructuring to reduce its outstanding debt by up to $70.5 million, adding that it intends to start an exchange offer for up to all $97 million of its 3.75% convertible senior notes due 2027.

Assuming 100% of the noteholders opt to exchange their notes, the proposed exchange consideration to be offered will be comprised of:

• $26.5 million of new 10% senior secured notes due 2012, on which interest will be paid in kind; and

• About 22.3 million shares of newly issued common stock, representing about 66.67% of the company's outstanding common stock.

Ambassadors said that holders of roughly 59.5% of the notes have entered into separate exchange offer commitment and support agreements with the company to participate in the offer.

The company noted that it will not receive any cash proceeds in connection with the exchange offer.

Completion of the restructuring plan will be completed during the fourth quarter.

Ambassadors is a cruise and marine company. It is transitioning its headquarters from Newport Beach, Calif., to Seattle.

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