FRO - Contemplated offering of shares
(Thomson Reuters ONE) -
Frontline Ltd. (NYSE/OSE: FRO) (the "Company") has mandated Arctic Securities AS
and Arctic Securities LLC (the "Manager"), to assist the Company in a
contemplated offering (the "Offering") for issue of 13,422,819 new shares (the
"New Shares") for gross proceeds of USD 100 million. The Offering is directed
towards certain Norwegian and international institutional investors subject to
applicable exemptions from European prospectus requirements. The minimum
application and allocation amount has been set to the USD equivalent of EUR
100,000, provided that the Company reserves the right to, at its sole
discretion, allocate lower amounts to investors that qualify as "professional
investors" pursuant to the Norwegian Securities Trading Act and ancillary
regulations.
The subscription price in the Offering will be USD 7.45 per New Share (equalling
NOK 62.80 at a USD/NOK exchange rate of 8.43), equivalent to a 2.1 % discount to
the closing price of the Company's shares on the New York Stock Exchange on
December 8, 2016 adjusted for the USD 0.10 dividend declared by the Company on
28 November 2016. The application period for the Offering will start December
8, 2016 at 22:00 hours (CET) and will close on December 9, 2016 at 08:00 hours
(CET). The Company reserves the right to close or extend the application period
at any time at their sole discretion, at short notice.
Our largest shareholder, Hemen Holding Ltd., ("Hemen"), a Cyprus holding
company, indirectly controlled by trusts established by the Company's Chairman
and President, Mr. John Fredriksen, for the benefit of his immediate family,
which owns approximately 52% of the Company's ordinary shares, has guaranteed
the Offering. If the Offering is oversubscribed, the allocation to Hemen may be
reduced below its pro rata share in order to improve the free float.
The allocation will be made at the discretion of the Company in consultation
with the Manager, on or about December 9, 2016, subject to any shortening or
extension of the application period.
The New Shares will not give right to receive the USD 0.10 dividend declared by
the Company on 28 November 2016 with ex-date 13 December 2016 on the New Your
Stock Exchange and 14 December 2016 on the Oslo Stock Exchange and payment date
on or about 22 December 2016.
The net proceeds from the Offering will be used to opportunistically fund growth
opportunities through vessel acquisitions and for general corporate purposes.
Subject to full payment of the New Shares, the New Shares allocated in the
Offering are expected to be delivered to the subscribers in the Offering on or
about December 16, 2016 and to be registered in the Norwegian Central Securities
Depository (VPS) with the Company's ISIN BMG3682E1921 and commence to trade
under the Company's ordinary trading symbol "FRO" and become tradable on the
Oslo Stock Exchange and the New York Stock Exchange on or about December
16, 2016.
This announcement does not constitute an offer to sell or the solicitation of an
offer to buy securities and shall not constitute an offer, solicitation or sale
in any jurisdiction in which such offer, solicitation or sale is unlawful. The
offering is being made by means of an application agreement, a term sheet and a
prospectus and related prospectus supplements which form a part of the Company's
effective Registration Statement on Form F-3 (Registration No. 333-204884) that
has previously been filed with the US Securities and Exchange Commission (the
"SEC"). Copies of the offering documentation may be obtained by contacting
Arctic Securities at telephone: +47 21 01 30 40 or e-mail: settlement(at)arctic.com
.
December 8, 2016
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Contacts:
Robert Hvide Macleod: Chief Executive Officer, Frontline Management AS
+47 23 11 40 84
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76
Arctic Securities AS:
+47 2101 3123
Arctic Securities LLC:
+1 212 597 5555
***
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements, which include statements
concerning plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements, which are other than statements
of historical facts. Words such as "believe", "anticipate", "intends",
"estimate", "forecast", "project", "plan", "potential", "may", "should",
"expect", "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various
assumptions. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections. The information set forth herein
speaks only as of the date hereof, and we disclaim any intention or obligation
to update any forward-looking statements as a result of developments occurring
after the date of this communication.
In addition to these important factors and matters discussed elsewhere herein,
important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of world economies, fluctuations in currencies and interest rates,
general market conditions, including fluctuations in charter hire rates and
vessel values, changes in demand in the dry bulk market, changes in our
operating expenses, including bunker prices, drydocking and insurance costs, the
market for our vessels, availability of financing and refinancing, 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, political events or acts by terrorists, and other important
factors described from time to time in the reports filed by the Company with the
Securities and Exchange Commission.
This information is subject to the disclosure requirements of section 5-12 of
the Norwegian Securities Trading Act.
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: Frontline Ltd. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 08.12.2016 - 22:44 Uhr
Sprache: Deutsch
News-ID 511846
Anzahl Zeichen: 7714
contact information:
Town:
Hamilton
Kategorie:
Business News
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