Carnival Corporation is to sell its Windstar Cruises brand to Ambassadors International for $100 million.
Windstar Cruises, which operates three ships – the 312-passenger Wind Surf and the 148-passenger Wind Star and Wind Spirit – is a wholly owned subsidiary of Holland America Line, a unit of Carnival Corporation.
Under the terms of the agreement, $40 million of the payment will be in cash and assumption of liabilities, while Carnival will provide mortgage financing for $60 million. The loan will be payable over 10 years at 7% interest, collateralised by the three Windstar ships.
Carnival Corporation chairman and CEO Micky Arison said: “We made the decision to exit from the niche cruise business some time ago and the sale of Windstar is in line with that strategy.
“Last year we made a decision to cease operation of UK’s Swan Hellenic and transfer its one ship to the Princess Cruises brand. Both of these are excellent products but simply do not fit into our future growth plans.”
Carnival expects the transaction to close in the second quarter of 2007, until which time Holland America Line will continue to operate the company through a transitional services agreement.
