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Carnival Corporation & plc Enters Into Definitive Agreement to Sell Windstar Cruises Unit to Ambassadors International, Inc.
MIAMI, Feb. 22 /PRNewswire-FirstCall/ -- Carnival Corporation & plc(NYSE/LSE: CCL; NYSE: CUK) today announced that it has signed a definitiveagreement to sell its Windstar Cruises brand to Ambassadors International Inc.(Nasdaq: AMIE). Windstar Cruises, which operates three sailing vessels, is awholly owned subsidiary of Holland America Line, a unit of CarnivalCorporation & plc.
Under the terms of the agreement, Windstar will be sold for $100 million,$40 million of which is payable in cash and assumption of liabilities, andCarnival will provide mortgage financing for $60 million. The loan will bepayable over 10 years at seven percent interest, collateralized by the threeWindstar ships.
"Windstar is an outstanding and unique cruise product and has garnered anextremely loyal following, however, Carnival Corporation & plc's growthstrategy is focused on expanding our core growth brands and opening newmarkets," said Micky Arison, Carnival Corporation & plc chairman and CEO. "Wemade the decision to exit from the niche cruise business some time ago and thesale of Windstar is in line with that strategy. Last year we made a decisionto cease operation of UK's Swan Hellenic and transfer its one ship to thePrincess Cruises brand. Both of these are excellent products but simply donot fit into our future growth plans," he explained.
Added Stein Kruse, president and chief executive officer, Holland AmericaLine, "We are pleased to have a committed buyer like Ambassadors Internationalto take over Windstar. The transaction has been structured to ensure a smoothtransition for all parties. Holland America Line will continue to operate thecompany through a transitional services agreement in the short term whichincludes vessel, reservations and other operational functions."
Windstar Cruises' three ships include the 312-passenger Wind Surf and the148-passenger Wind Star and Wind Spirit.
Carnival expects the transaction to close in the second quarter of 2007,subject to any applicable regulatory requirements, and to be neutral toearnings on an annualized basis for the 12-month period following closing.
About Carnival Corporation & plc
Carnival Corporation & plc is the largest cruise vacation group in theworld, with a portfolio of cruise brands in North America, Europe andAustralia, comprised of Carnival Cruise Lines, Holland America Line, PrincessCruises, Seabourn Cruise Line, Windstar Cruises, AIDA Cruises, Costa Cruises,Cunard Line, Ocean Village, P&O Cruises, Swan Hellenic, and P&O CruisesAustralia.
Together, these brands operate 81 ships totaling 144,000 lower berths with20 new ships scheduled to enter service between March 2007 and spring 2011.Carnival Corporation & plc also operates Holland America Tours and PrincessTours, the leading tour companies in Alaska and the Canadian Yukon. Traded onboth the New York and London Stock Exchanges, Carnival Corporation & plc isthe only group in the world to be included in both the S&P 500 and the FTSE100 indices.
About Ambassadors International, Inc.
Ambassadors International, Inc. is a cruise, marine, and travel and eventcompany. Through Ambassadors Cruise Group, the company operates MajesticAmerica Line, North America's premier river and coastal cruising company. Thecompany is also a global leader in providing construction and consultingservices to marina owners through its Ambassadors Marine Group subsidiary.
In addition, the Company provides travel and event services through itsAmbassadors Travel and Events division.
For more information on Windstar Cruises visit www.windstarcruises.com.
SOURCE Carnival Corporation & plc
CONTACT: Media: Tim Gallagher of Carnival Corporation & plc in the US,
+1-305-599-2600, ext. 16000, or Rose Abello for Holland America Line,
+1-206-286-3479, or Richard Jacques or Sophie Fitton, both of Brunswick Group,
44 (0) 20 7404 5959, for Carnival Corporation & plc in the UK; Investor
Relations: Beth Roberts of Carnival Corporation & plc, +1-305-406-4832
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