SFL - Signing of Restructuring Agreement with Seadrill Limited
(Thomson Reuters ONE) -
Ship Finance International Limited (NYSE: SFL) ("Ship Finance" or the "Company")
announces that the Company and certain of its subsidiaries have entered into a
restructuring agreement in connection with a comprehensive restructuring of
Seadrill Limited and certain of its subsidiaries ("Seadrill").
Seadrill has filed prearranged chapter 11 cases in the Southern District of
Texas together with the agreed restructuring plan. This is supported by secured
lenders representing more than two-thirds of each of its secured credit
facilities, approximately 40 percent of its bondholders and a consortium of
investors. The Company and three of the Company's subsidiaries, who own and
lease the drilling rigs West Linus, West Hercules and West Taurus to Seadrill,
have also entered into the restructuring agreement.
In addition to raising $1.06 billion of new capital, Seadrill will extend and
re-profile the secured bank debt and reduce leverage. The agreement should
provide Seadrill with a five-year runway and a bridge to an industry recovery.
As part of the restructuring plan, Ship Finance and its relevant subsidiaries
have agreed to reduce the contractual charter hire by approximately 30% for a 5-
year period starting in 2018, with the reduced amounts added back in the period
thereafter. The leases for West Hercules and West Taurus will also be extended
for a period of 13 months until December 2024.
Concurrently, the banks who finance the three rigs have agreed to extend the
loan period by approximately four years, with reduced amortization in the
extension period compared to today's level. The net cash flow from the three
rigs in the extension period is estimated to approximately $29 million per year,
or approximately $0.08 per share per quarter, net of loan interest and
amortization.
Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment:
"Seadrill has for a long period communicated the need for a restructuring of its
balance sheet in order to meet its operational and financial commitments. We are
very happy to see that there is strong support for the restructuring from
existing stakeholders and also new money investors.
The uncertainty on timing of the restructuring and impact on our leases has been
negative for us and our investors. We are happy to announce a comprehensive
solution where we are an integral part and with revised terms that will
facilitate continued cash flow from the three rigs. The Board adjusted the
dividend in connection with the latest quarterly report in August, and we can
now focus on new asset acquisitions, with the aim to build our distribution
capacity going forward."
Link to information and documents relating to the Seadrill chapter 11 filing.
September 13, 2017
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Questions can be directed to Ship Finance Management AS:
Investor and Analyst Contacts:
Harald Gurvin, Chief Financial Officer, Ship Finance Management AS
+47 23 11 40 09
André Reppen, Senior Vice President, Ship Finance Management AS
+47 23 11 40 55
Media Contact:
Ole B. Hjertaker, Chief Executive Officer, Ship Finance Management AS
+47 23 11 40 11
About Ship Finance
Ship Finance International Limited has a unique track record in the maritime
industry, being consistently profitable and paying dividends every quarter since
2004. The Company's fleet of around 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.
More information can be found on the Company's website: www.shipfinance.bm
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
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News-ID 559691
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Town:
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Kategorie:
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"SFL - Signing of Restructuring Agreement with Seadrill Limited"
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