Start-up cruise line Great American Steamboat Company has purchased the American Queen steamboat and plans to begin service in April of 2012.

The ship will homeport out of Memphis, where the new company is based.

The purchase price for the vessel, which is 16 years old and last sailed in 2008 for Majestic America Line, was reported to be $15.5 million.

Reports indicate that the ship will receive a $5 million drydocking. Additionally, the city of Memphis has put up $9 million to purchase the ship as a loan, which will be paid back by an $89/per passenger head tax over a 10 year period. That money is said to also be paying for the ship’s berth in Memphis.