FRO - Frontline Ltd. announces the successful completion of its USD 225 million convertible bond offering
(Thomson Reuters ONE) -
NOT FOR DISTRIBUTION OR RELEASE DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED
STATES OF AMERICA (OR TO U.S. PERSONS), AUSTRALIA, CANADA OR JAPAN, OR IN ANY
OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY APPLICABLE
LAW
Frontline Ltd. ("Frontline" or the "Company") announces the pricing of its USD
225 million convertible bond offering, including the full exercise of the
increase option of USD 25 million. The proceeds from the Bonds will be used for
general corporate purposes, financing of the remaining equity investments in the
Company's newbuilding program and will improve the Company's ability to react to
attractive market opportunities.
The senior unsecured convertible bonds will have an annual coupon of 4.50%,
payable quarterly in arrear on the specified payment dates and a conversion
price of USD 39.00. The reference price has been set at USD 29.7784 (NOK
180.0045). The applicable USD: NOK exchange rate has been set at 6.0448
The Bonds will be issued and redeemed at 100% of their principal amount and
will, unless previously redeemed, converted or purchased and cancelled, mature
on April 14, 2015.
The Bonds are expected to be settled on or around April 14, 2010. Frontline may
decide to list the Bonds on an exchange at a later stage.
ABG Sundal Collier, Arctic Securities and Deutsche Bank are acting as Joint-Lead
Managers and ABG Sundal Collier and Deutsche Bank are acting as Joint
Boookrunners in relation to the offering. First Securities AS and Nordea Bank
Norge ASA are acting as Co-Managers.
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
March 26, 2010
Questions should be directed to:
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76
Important Notice
This press release is for information purposes only and does not constitute or
form part of, and should not be construed as an offer or an invitation to sell
or issue, or the solicitation of any offer to buy or subscribe for, any
securities. In connection with this transaction there has not been, nor will
there be, any public offering of the Bonds. No prospectus will be prepared in
connection with the offering of the Bonds. The Bonds may not be offered to the
public in any jurisdiction in circumstances which would require Frontline to
prepare or register any prospectus or offering document relating to the Bonds in
such jurisdiction. The distribution of this press release and the offer and sale
of the Bonds in certain jurisdictions may be restricted by law. Any persons
reading this press release should inform themselves of and observe any such
restrictions.
This press release is not being issued in or to the United States of America,
Canada, Australia, Japan or in any other jurisdiction in which such distribution
would be prohibited by applicable law. This press release does not constitute or
form part of an offer or solicitation of an offer to purchase or subscribe for
securities in the United States. The Bonds and the shares referred to herein
will not be registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States, or to, or for the
account or benefit of U.S. persons (as such term is defined in Regulation S). No
offering of such securities is being made in the United States.
This press release is directed only at persons who (i) are outside the United
Kingdom or (ii) have professional experience in matters relating to investments
who fall within Article 19(5) ("investment professionals") of The Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the
"Order") or (iii) are persons falling, within Article 49(2)(a) to (d) ("high net
worth companies, unincorporated associations etc") of the Order (all such
persons together being referred to as "relevant persons"). This press release is
directed only at relevant persons and must not be acted on or relied on by
persons who are not relevant persons. Any investment or investment activity to
which this press release relates is available only to relevant persons and will
be engaged in only with relevant persons. In addition, if and to the extent that
this press release is communicated in, or the offered securities to which it
relates is made in, any EEA member state that has implemented Directive
2003/71/EC (together with any applicable implementing measures in any member
state, the "Prospectus Directive"), this press release and the offering
described herein are only addressed to and directed at persons in that member
state who are "qualified investors" within the meaning of the Prospectus
Directive (or who are other persons to whom the offer may lawfully be addressed)
and must not be acted on or relied on by other persons in that member state.
ABG Sundal Collier, Arctic Securities and Deutsche Bank are acting for the
Company and no one else in connection with the offer of the Bonds and will not
be responsible to any other person for providing the protections afforded to
their client, or for providing advice in relation to the proposed offer of the
Bonds.
Stabilisation/FSA
Forward Looking Statements
This press release contains forward looking statements. These statements are
based upon various assumptions, many of which are based, in turn, upon further
assumptions, including Frontline management's examination of historical
operating trends. Although Frontline believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond its control, Frontline cannot give assurance that it will achieve or
accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual results to
differ materially from those discussed in this press release include the
strength of world economies and currencies, general market conditions including
fluctuations in charter hire rates and vessel values, changes in demand in the
tanker market as a result of changes in OPEC's petroleum production levels and
world wide oil consumption and storage, changes in the Company's operating
expenses including bunker prices, dry-docking and insurance costs, changes in
governmental rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general domestic and
international political conditions, potential disruption of shipping routes due
to accidents or political events, and other important factors described from
time to time in the reports filed by the Company with the United States
Securities and Exchange Commission.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1398233]
Unternehmensinformation / Kurzprofil:
Datum: 26.03.2010 - 13:25 Uhr
Sprache: Deutsch
News-ID 18175
Anzahl Zeichen: 0
contact information:
Town:
Hamilton
Kategorie:
Business News
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"FRO - Frontline Ltd. announces the successful completion of its USD 225 million convertible bond offering"
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