SFL - Ship Finance International Limited Announces Offering of Convertible Senior Notes
(Thomson Reuters ONE) -
Ship Finance International Limited ("Ship Finance" or the "Company") (NYSE: SFL)
today announced that it, subject to market and other conditions, intends to
offer $200 million aggregate principal amount of Convertible Senior Notes due
2021 (the "Notes"). The Notes will pay interest quarterly in arrears, have a
term of five years, and will be convertible into the Company's common shares.
Upon conversion, Ship Finance will pay or deliver, as the case may be, cash, our
common shares, or a combination of cash and our common shares, at the Company's
election, as further described in the offering prospectus.
The Company intends to use the net proceeds received from the offering of the
Notes for general corporate purposes, including working capital and the
repurchase of all or a portion of its existing 3.25% convertible notes.
In connection with the Company's offering of the Notes, a subsidiary of the
Company will enter into a share lending agreement with affiliates of Jefferies
LLC, one of the underwriters of the Notes offering, (the "Share Borrower"),
under which it will lend to the Share Borrower up to 8 million of the Company's
common shares. None of the borrowed shares are newly-issued common shares.
Instead, the shares are provided by way of a loan from one of Ship Finance's
largest shareholders, which is an affiliate of the Company.
Purchasers of the Notes may separately sell up to 8 million of the Company's
common shares that they may borrow through the Share Borrower. The Company
expects that the selling shareholders will use the short position created by
such sale to hedge their respective investments in the Notes. Neither the
Company, nor its subsidiaries, nor its shareholders will receive any proceeds
from the sale of the borrowed shares.
Jefferies LLC, ABG Sundal Collier, Inc. and Morgan Stanley & Co. LLC will act as
underwriters, Seaport Global Securities LLC and Clarksons Platou Securities,
Inc. will act as co-managers, for the offering of the Notes.
The offering of the Notes and the offering of the Common Shares will be made
under separate prospectus supplements under the Company's existing shelf
registration statement filed with the Securities and Exchange Commission on
September 26, 2016.
The offering of the Notes and the offering of the Common Shares will be made by
means of separate prospectus supplements to the prospectus forming a part of the
Company's shelf registration statement and other related documents. You may
obtain these documents for free by visiting EDGAR on the Securities and Exchange
Commission website at www.sec.gov. Alternatively, copies of the preliminary
prospectus supplement may be obtained from Jefferies LLC, Attention: Equity
Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY,
10022, by email at Prospectus_Department(at)Jefferies.com or by phone at
+1 877-821-7388, ABG Sundal Collier Inc., Douglas Miller, 850 Third Avenue,
Suite 9-C, New York, New York 10022, douglas.miller(at)abgsc.com, +1 212-605-3827,
or Morgan Stanley & Co. LLC, 180 Varick Street, 2(nd) Floor, New York, New York
10014, Attention: Prospectus Department. Before you invest, you should read the
prospectus supplements and accompanying base prospectus along with other
documents that the Company has filed with the Securities and Exchange Commission
for more complete information about the Company and these offerings.
This announcement does not constitute an offer to sell, or a solicitation of an
offer to buy, the Notes, common shares or any other securities, nor will there
be any sale of convertible notes, common shares or any other securities in any
state or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of any
such state or jurisdiction.
September 29, 2016
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Investor and Analyst Contact:
Harald Gurvin, Chief Financial Officer: +47 23114009
André Reppen, Senior Vice President: +47 23114055
Media Contact:
Ole B. Hjertaker, Chief Executive Officer: +47 23114011
About Ship Finance
Ship Finance International Limited (NYSE: SFL) has an unprecedented track record
in the maritime industry, being consistently profitable and paying dividends
every quarter since 2004. The Company's fleet of more than 70 vessels is split
between tankers, bulkers, container vessels and offshore assets, and Ship
Finance's long term distribution capacity is supported by a portfolio of long
term charters and significant growth in the asset base over time.
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 Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ship Finance International Limited via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 29.09.2016 - 22:16 Uhr
Sprache: Deutsch
News-ID 498019
Anzahl Zeichen: 7586
contact information:
Town:
Hamilton
Kategorie:
Business News
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"SFL - Ship Finance International Limited Announces Offering of Convertible Senior Notes"
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