Ray Goldenberg wrote:
>
> 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 |