Delta Queen Steamboat Purchased!
Ray Goldenberg
I received this press release from Ambassadors International, Inc. 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. Signs Definitive Agreement With
Delaware North Companies to Acquire Delta Queen Steamboat Company
NEWPORT BEACH, Calif., April 6
Ambassadors International, Inc. (Nasdaq: AMIE - News; the "Company")
announced today that it has reached a definitive agreement with
Delaware North Companies, a privately-held, global leader in the
hospitality industry, to acquire the assets of the Delta Queen
Steamboat Company.
The Delta Queen Steamboat Company is a premier cruise company
operating historical cruise itineraries on many of America's best
known rivers, including the Mississippi, Ohio, Tennessee, Cumberland
and Arkansas rivers with stops at many of America's most historic
cities, battle grounds and estates. The Delta Queen Steamboat Company
is America's oldest cruise line with its history dating back to 1890.
The Delta Queen Steamboat Company owns and operates a three-vessel
fleet which includes the 436-passenger American Queen®, the
416-passenger Mississippi Queen® and the 174-passenger Delta Queen®.
Delta Queen Steamboat Company's cruises recreate the grandeur of the
past on the company's luxurious, modern-day and historic
sternwheelers.
Delaware North Companies acquired the Delta Queen Steamboat Company in
2002. Over the past several years, Delaware North Companies has
focused on stabilizing and growing the business by adding new
itineraries and marketing programs, as well as provided economies of
scale with its other world-class hospitality holdings and operations.
These efforts have contributed to building a world-class reputation of
the Delta Queen Steamboat Company in the global travel and tourism
market.
"Ambassadors International clearly has established itself in the
cruise industry through its outstanding operations of American West
Cruises," stated Chuck Moran, President and Chief Operating Officer,
Delaware North Companies. "Even though we are privately-held, we
continually look for opportunities to improve corporate value. Our
decision was driven by the need to focus on growth opportunities in
our core business and because of other investment considerations.
Delaware North Companies decided it was in its best interest to find a
company that could continue the tradition of excellence that has
always been part of the Delta Queen. We have found that in Ambassadors
International."
Joe Ueberroth, President and CEO of Ambassadors International, Inc.,
added, "The combination of the Delta Queen Steamboat Company with
American West Steamboat Company takes two significant regional
businesses and creates a national, American cruise company. The
operations will be combined under our Ambassadors Cruise Group
subsidiary and be led by David Giersdorf. Our team is excited to offer
our customers a selection of wonderful American itineraries across a
fleet of luxurious sternwheelers with dedicated American crews. This
acquisition will increase our number of vessels to five and the number
of berths from 365 to approximately 1,400 berths, making us the
largest operator in our category."
The transaction is subject to the approval of certain debt covenant
amendments by the U.S. Department of Transportation and a bondholder,
as well as customary closing conditions, and is expected to close by
the end of April 2006. Under the terms of the agreement, Ambassadors
Cruise Group, LLC, a wholly-owned subsidiary of Ambassadors
International Inc., will acquire the three vessels and associated
operating assets of the Delta Queen Steamboat Company for $3.0 million
in cash, the assumption of approximately $9 million of customer
deposits and the assumption of approximately $35 million of
fixed-rate, 6.50% debt payable through 2020 and guaranteed by the U.S.
Maritime Administration. In addition, the transaction includes
contingent consideration of 100,000 shares of Ambassadors
International, Inc. common stock, to be granted by the company to the
Delta Queen Steamboat Company if certain future financial targets are
met in the three years following the close of the transaction.
Conference Call
Ambassadors International, Inc. will host a conference call to discuss
the strategic and financial aspects of the acquisition on Friday,
April 7, 2006 at 9:00 a.m. Pacific Daylight Time. Interested parties
may join the call by dialing (800) 895-3606, conference ID #: ANALYST.
The conference call may also be joined via the Internet at
www.ambassadors.com. For conference replay access, parties may dial
(888) 567-0682 and follow the prompts or visit our website at
www.ambassadors.com/investor. A webcast will be made available
following the conference call.
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.
About Delaware North Companies
Delaware North Companies is one of the world's leading hospitality and
food service providers. Its family of companies includes Delaware
North Companies Parks & Resorts, Delaware North Companies Gaming &
Entertainment, Delaware North Companies Travel Hospitality Services,
Delaware North Companies Sportservice, Delaware North Companies
International, TD Banknorth Garden, the Delta Queen Steamboat Company,
and American Park 'n Swap. Delaware North Companies is one of the
largest privately held companies in the United States with revenues
approaching $2 billion annually and 40,000 associates serving half a
billion customers in the United States, Canada, the United Kingdom,
Australia and New Zealand. For more information, visit
www.DelawareNorth.com.
Forward-Looking Statements
This press release contains forward-looking statements that involve
various risks and uncertainties. These statements include the
Company's future prospects, the consummation of the Delta Queen
acquisition and Delta Queen's financial impact on the Company. 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, lower investment yields, the Company's ability to
consummate the acquisition of Delta Queen in a timely manner or at
all, the Company's ability to successfully integrate the operations of
companies or businesses it acquires and realize the expected benefits
of its acquisitions (including the acquisition of Delta Queen), the
Company's ability to successfully and efficiently operate the
businesses that it acquires (including Delta Queen), the ability to
service our debt (including the debt which will be assumed upon
consummation of the Delta Queen acquisition) 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.
Additional Information
Please contact Brian Schaefgen of Ambassadors International, Inc.:
(949) 759-5900
--
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John Sisker
(Just a slightly different take and style of reporting from the trades on
this Delta Queen story... for what it is worth.)
Delaware North Companies, one of the nation's largest privately held
companies, is selling its Delta Queen Steamboat Company river operation to
Ambassadors International, which already owns a similar paddlewheel river
operation in American West Steamboat Company. The Delta Queen Steamboat
Company owns and operates a three-vessel fleet, which includes the
436-passenger American Queen, the 416-passenger Mississippi Queen and the
174-passenger Delta Queen. Joe Ueberroth, president and CEO, Ambassadors
International, said the combination of the two river companies takes
regional businesses and turns them into a national, American cruise company.
The new group will have five vessels with 1,400 berths. The two operations
will be combined and led by David Giersdorf, Ueberroth said. Giersdorf is a
former Holland America Line senior executive and the current president of
American West Steamboat Company. The transaction is subject to the approval
of certain debt covenant amendments by the U.S. Department of Transportation
and a bondholder, as well as customary closing conditions, and is slated for
closing by the end of April. Under the terms of the agreement, Ambassadors
Cruise Group will acquire the three vessels and associated operating assets
of the Delta Queen Steamboat Company for $3 million in cash, the assumption
of $9 million of customer deposits and the assumption of $35 million of
fixed-rate debt payable through 2020 and guaranteed by the U.S. Maritime
Administration. In addition, the transaction includes contingent
consideration of 100,000 shares of Ambassadors International common stock to
be granted to the Delta Queen Steamboat Company if certain future financial
targets are met in the three years following the close of the transaction.
It's been a very tough year for Delta Queen because of Hurricane Katrina's
damage to New Orleans, where some of the line's cruises originate and where
the river line is headquartered. Delta Queen is America's oldest cruise
line, dating back to 1890.
Happy sailing,
John Sisker
SHIP-TO-SHORE CRUISE AGENCY®
(714) 536-3850 or toll free at
(800) 724-6644 & (pagoo ID: 714.536.3850)
http://www.shiptoshorecruise.com