Investment Opportunity : A New Type Of Cruise Ships

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Investment Opportunity

An Ultra Ship is a new type of cruise ship, significantly larger, and with greatly expanded amenities and attractions, versus a traditional ship. Only three Ultra Ships have been built thus far, and no further ones are on order.

Newco Cruise will build two “Ultra Ships” for the North American and European cruise markets, capitalizing on an attractive green field opportunity created by a) recent strategic developments by legacy players, and b) the depressed condition of shipyard order books.

Total Project cost is €2 - 2.1 billion. €425 - 450 million equity is required, staged over five years between 2011 and 2015, with the major amounts being required in 2012, 2014, and 2015. Realization of the investment is projected in 2016.

Projected IRR over the five year life of the project is 24.9%, with considerable scope for greater than that. There is also, naturally, risk of a lower return. Current trends and macro conditions favor the upside.

Investor liquidity is expected to be via public floatation or industry sale of the company.

Irrevocably committed equity will be called in tranches, commencing in 2011, with the final tranche in 2015. The first ship will enter service in 2015 and the second in 2017. Investor liquidity is targeted for 2016 once the performance of the first ship is demonstrated.

The business will be built and managed by experienced cruise industry professionals and led by a 17-year veteran, and former CEO of one of the Big Three,

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