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Cruise News for the Corporate Travel Professional

October 2009 Edition

Ambassadors Stock Exchange to Reduce Debt by $47.8 Million

Ambassadors International Inc. said its previously announced exchange offer will result in a $47.8 million net reduction in the company’s outstanding long-term debt. The stockholders approved the move at a special stockholder meeting on Nov. 12. Ambassadors, the parent company of Windstar Cruises, also announced that it received a NASDAQ deficiency letter on Nov. 12 indicating that the company no longer meets the minimum bid price requirement for continued listing on the NASDAQ Global Select Market. The bid price of its common shares has closed under $1 for the last 30 consecutive business days. The notification does not result in the immediate delisting of the company’s common shares from the NASDAQ list, but Ambassadors has until May 11 to regain compliance with the minimum closing bid price requirement.

The company announced that approximately 68 percent, or $65.8 million, of $97 million in convertible notes were tendered into the exchange offer. The company accepted for exchange the convertible notes and expects to settle the exchange offer as soon as practicable. Upon settlement of the exchange offer, the company will issue approximately 15.2 million shares of its common stock and approximately $18 million aggregate principal amount of 10 percent senior secured notes due 2012 in exchange for convertible notes. Upon settlement, approximately $31.2 million of the convertible notes will remain outstanding.

If the company does not regain compliance with NASDAQ by May 11, it will provide written notification that the shares will be delisted. At that time, Ambassadors may appeal NASDAQ’s delisting determination or apply to transfer the listing of its common shares to the NASDAQ Capital Market. If such application to the NASDAQ Capital Market is approved, then the company may be eligible for an additional grace period. .

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