Sep. 11, 2009 (PR Newswire) -- SEATTLE, Sept. 11 /PRNewswire-FirstCall/ -- Ambassadors International, Inc. (Nasdaq: AMIE) today announced a restructuring plan to reduce its outstanding debt by up to $70.5 million. The restructuring plan involves:
-- A planned exchange offer for up to all of the Company's $97.0
million of outstanding 3.75% convertible senior notes due 2027
("Convert Notes").
-- Assuming 100% of the holders of the Convert Notes accept the offer and
elect to exchange their Convert Notes, the proposed exchange
consideration to be offered will be comprised of:
-- $26.5 million aggregate principal amount of newly issued 10% senior
secured notes due 2012 ("New Notes") on which interest
will be paid in kind (or in cash at the Company's election);
and
-- approximately 22.3 million shares of newly issued common stock,
which will represent approximately 66.67% of the Company's
outstanding common stock, immediately following the exchange offer.
-- Holders of approximately 59.5% of the aggregate principal amount of the
Convert Notes have entered into separate exchange offer commitment and
support agreements with the Company pursuant to which the definitive
terms of the exchange offer will be agreed and such holders have agreed
to exchange their Convert Notes for the newly issued New Notes and
shares of common stock in the exchange offer.
The planned exchange offer, if launched, will be subject to stockholder approval pursuant to the rules of The NASDAQ Global Market, as well as customary closing conditions. The Company will not receive any cash proceeds in connection with the exchange offer.
The Company anticipates that the restructuring plan will be completed during the fourth quarter of 2009.
Upon the commencement of the planned exchange offer, the Company will make available a Schedule TO, which will include an Offer to Exchange and related materials. These documents will set forth the complete terms and conditions of the exchange offer, and holders of the Convert Notes are urged to read these documents when they become available as they will contain important information. These and other related documents will be filed with the Securities and Exchange Commission and may be obtained at the Securities and Exchange Commission's website, http://www.sec.gov. These materials may also be obtained free of charge from the Company.
This press release is for informational purposes only and is neither an offer to sell or purchase, nor a solicitation of an offer to buy or sell, any securities of the Company.
