Mortgage on the Columbia Queen!
Ray Goldenberg
I received this press release from Ambassadors International and
thought it would be of interest. If you have missed any of my news'
postings, they are available on my web site.
Best regards,
Ray
LIGHTHOUSE TRAVEL
800-719-9917 or 805-566-3905
http://www.lighthousetravel.com
Ambassadors International, Inc. Acquires First Preferred Ship Mortgage
on the Columbia Queen
NEWPORT BEACH, Calif., April 25
Ambassadors International, Inc. (Nasdaq: AMIE) (the "Company")
announced today that its wholly-owned subsidiary, Ambassadors Cruise
Group, LLC has acquired the first preferred ship mortgage on the
vessel, Columbia Queen, from the United States of America acting
through the U.S. Department of Transportation. The first mortgage on
the Columbia Queen is for approximately $9 million of fixed-rate,
6.00% debt payable through 2015. The Company has not acquired the
ownership rights to the Columbia Queen.
Joe Ueberroth, President and CEO of the Company, stated, "We believe
that our purchase of this first preferred ship mortgage for $5 million
is a sound and attractive investment for our Company. The Columbia
Queen is an excellent vessel that has operated cruises in the Pacific
Northwest with itineraries similar to those we offer on our Queen of
the West vessel."
About Ambassadors International, Inc.
Ambassadors International, Inc. is a cruise, marine, insurance and
travel and event company. The Company operates American West Cruises,
one of North America's premier river and coastal cruising companies.
The Company also provides travel and event services for corporations,
associations and tradeshows through its Ambassadors, LLC subsidiary.
In addition, it operates BellPort Group, Inc., an international marine
company, and participates in selective reinsurance programs through
its specialty reinsurance subsidiary, Cypress Reinsurance, Ltd. The
Company is headquartered in Newport Beach, California. In this press
release, any reference to "Company," "Ambassadors," "management,"
"we," "us" and "our" refers to Ambassadors International, Inc. and its
management team.
Forward-Looking Statements
This press release contains forward-looking statements that involve
various risks and uncertainties. The forward-looking statements
contained in this release are based on our current expectations and
entail various risks and uncertainties that could cause our actual
results to differ materially from those suggested in our
forward-looking statements. We believe that such risks and
uncertainties include, among others, general economic financial and
business conditions, overall conditions in the cruise, travel and
insurance markets, potential claims related to our reinsurance
business, further declines in the fair market value of our
investments, our ability to collect principal and interest on the
acquired first preferred ship mortgage from the obligee, lower
investment yields, our ability to successfully integrate the
operations of companies or businesses we acquire and realize the
expected benefits of our acquisitions, our ability to successfully and
efficiently operate the businesses that we acquire, our ability to
compete effectively in the U.S. cruise market, our ability to service
our debt and other factors discussed in our Annual Report on Form 10-K
for the year ended December 31, 2005. We are providing this
information as of the date of this release and do not undertake any
obligation to update any forward-looking statements contained in this
document as a result of new information, future events or otherwise.
--
Mark and Gloria Hagwood
>
> NEWPORT BEACH, Calif., April 25
> Ambassadors International, Inc. (Nasdaq: AMIE) (the "Company")
> announced today that its wholly-owned subsidiary, Ambassadors Cruise
> Group, LLC has acquired the first preferred ship mortgage on the
> vessel, Columbia Queen, from the United States of America acting
> through the U.S. Department of Transportation. The first mortgage on
> the Columbia Queen is for approximately $9 million of fixed-rate,
> 6.00% debt payable through 2015. The Company has not acquired the
> ownership right Joe Ueberroth, President and CEO of the Company, stated, "We believe
> that our purchase of this first preferred ship mortgage for $5 million
> is a sound and attractive investment for our Company. The Columbia
> Queen is an excellent vessel that has operated cruises in the Pacific
> Northwest with itineraries similar to those we offer on our Queen of
> the West vessel."
>
Ray, perhaps some of the more astute folks on r.t.c. can set
me straight on the math, here. I have to make a lot of
rounding, and guesses, but suspect that they won't skew the
results too much.
note would be fully amortized between 2006 and 2015,
monthly, or about 108 payments
nominal rate, monthly, 6%/12 or 1/2% per month
proceeds $9 million
calculated monthly payment $108,050
all this could change if there was a balloon at the end
If they bought the note for $5 million, it would indicate a
discounted return just under 22.5%
If this is correct, it would sound to poor old me like some
company is about ready to tank or has tanked, and somebody
discovered a way to get the primary assets at a deep discount.
What's happening?
Tom
Ray Goldenberg
<Nob...@cox.net> wrote:
>If this is correct, it would sound to poor old me like some
>company is about ready to tank or has tanked, and somebody
>discovered a way to get the primary assets at a deep discount.
Hi Tom,
The previous owners did run aground, so to speak (bankruptcy). <;+)
Best regards,
Ray
LIGHTHOUSE TRAVEL
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