SFL - Sale of notes and warrants in Horizon Lines
(Thomson Reuters ONE) -
Press release from Ship Finance International Limited, June 1, 2015.
Ship Finance International Limited (NYSE: SFL) ("Ship Finance" or the
"Company"), today announced that it has sold its holding of notes and warrants
in Horizon Lines, Inc. ("Horizon Lines") for net cash proceeds of approximately
$72 million.
In April 2012, Ship Finance received $40 million of Horizon Lines second-lien
notes and 9.25 million warrants in Horizon Lines in connection with a
termination of the charters for 5 container vessels. Thereafter, the second-lien
notes have accumulated interest on a non-cash basis at a rate of 15% annually.
In November 2014, Horizon Lines announced a merger with Matson Navigation
Company, Inc. ("Matson"), subject only to regulatory approval of a sale of
Horizon Lines' Hawaii assets to The Pasha Group. On May 29, 2015, the parties
announced the successful completion of the transaction, and Matson has paid
$0.72 per warrant and the second-lien notes have been redeemed at a premium.
Ship Finance has conservatively recorded the notes on our balance sheet at 40%
of par value, and the book gain is estimated to approximately $45 million, to be
recorded in the second quarter. The cash proceeds from the notes and warrants
are expected to be reinvested in new assets.
June 1, 2015
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
About Ship Finance
Ship Finance is a major ship owning company listed on the New York Stock
Exchange (NYSE: SFL). Including recent acquisitions, the Company will have a
fleet of 72 vessels, including 19 crude oil tankers (VLCC and Suezmax), two
chemical tankers, 22 dry bulk carriers (including 8 acquisitions), 17 container
vessels, two car carriers, six offshore supply vessels, two jack-up drilling
rigs and two ultra-deepwater semi-submersible drilling rigs. The fleet is one of
the largest in the world and most of the vessels are employed on long-term
charters.
More information can be found on the Company's website: www.shipfinance.org
Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward looking statements. These statements are
based upon various assumptions, many of which are based, in turn, upon further
assumptions, including Ship Finance management's examination of historical
operating trends. Although Ship Finance 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, Ship Finance 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 presentation 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
worldwide 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 announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ship Finance International Limited via GlobeNewswire
[HUG#1925377]
Unternehmensinformation / Kurzprofil:
Datum: 01.06.2015 - 14:38 Uhr
Sprache: Deutsch
News-ID 397210
Anzahl Zeichen: 4635
contact information:
Town:
Hamilton
Kategorie:
Business News
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"SFL - Sale of notes and warrants in Horizon Lines"
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