Cruise operator Ambassadors International Inc., which is in the process of moving from Newport Beach to Seattle, has unveiled another restructuring move with plans to cut up to $70.5 million in debt.
The company plans to issue $26.5 million in new debt and 22.3 million shares, worth about $29 million, in exchange for bonds due in 2027.
The move will give debt holders that take part in the exchange 67% ownership of Ambassadors International.
As of June 30, Ambassadors had $88 million in long-term debt.
Ambassadors operates riverboat, Alaska, Hawaii, Mediterranean and Caribbean cruises.
The debt and stock offer is the latest move by the company to restructure.
Earlier this year, Ambassadors sold a travel and event division to a Milwaukee private equity fund for an undisclosed price.
In May, it sold a marina construction business.
Joe Ueberroth stepped down as chief executive and chairman this year.
The changes mark the end of the long reign of Newport Beach’s Ueberroth family at the cruise and travel services company, which has struggled for the past year or so.
The move to Seattle is designed to bring the company closer to the cruise operations it plans to keep.
