FRO - Restructuring Update
(Thomson Reuters ONE) -
Frontline Ltd. ("Frontline") is pleased to announce that following elements of
the restructuring plan of Frontline, referred to in the press release dated
December 6, 2011, have been concluded:
Frontline 2012 Ltd. ("Frontline 2012" ) has within a small group of large
institutional investors, completed a private placement of 100,000,000 new
ordinary shares of USD 2.00 par value at a subscription price of USD 2.85,
raising USD 285 million in gross proceeds to Frontline 2012 (the "Private
Placement"). The Private Placement is subject to certain closing conditions
expected lifted by December 29, 2011.
Frontline Ltd. has been allocated 8,771,000 shares at a subscription price of
USD 2.85, representing approximately 8.8 percent of Frontline 2012.
When the Private Placement and restructuring is closed, Frontline will, if
practically possible, seek to give Frontline's shareholders the possibility to
participate in Frontline 2012. This possibility represents no instant value. It
might include a sale of Frontline's holding in Frontline 2012 to its
shareholders at the issue price. Frontline's main shareholder, Hemen, that has
subscribed for and been allocated 50,000,000 shares in Frontline 2012, will in
the event that Frontline's holding in Frontline 2012 is not sufficient to
satisfy the demand from Frontline's shareholders for Frontline 2012 shares, be
positive to contribute.
If the proposed restructuring of Frontline is consummated, Frontline will
receive $1,121 million in consideration for the sale of assets to Frontline
2012. The book value of the assets to be sold, including the remaining
newbuilding commitments, was as of 30.09.2011 $1,433 million.
Frontline has received a fairness opinion from SEB Enskilda concluding that the
consideration to be received by Frontline for the sale of assets referred to in
the press release from Frontline dated December 6, 2011 is fair from a financial
point of view.
Frontline is still negotiating with its banks and counterparts with the target
to complete the restructuring prior to December 31, 2011. However, Frontline can
at this stage not guarantee that the restructuring can be successfully
completed.
December 16, 2011
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Questions should be directed to:
Jens Martin Jensen: Chief Executive Officer, Frontline Management AS
+47 23 11 40 99
Inger M. Klemp:
Chief Financial Officer, Frontline Management AS
+47 23 11 40 76
Forward Looking Statements
Matters discussed in this document may constitute forward-looking statements.
The Private Securities Litigation Reform Act of 1995 provides safe harbor
protections for forward-looking statements in order to encourage companies to
provide prospective information about their business. Forward-looking
statements 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.
Frontline desires to take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The words "believe,"
"anticipate," "intends," "estimate," "forecast," "project," "plan," "potential,"
"will," "may," "should," "expect" "pending" and similar expressions identify
forward-looking statements.
The forward-looking statements in this document are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management's examination of historical operating
trends, data contained in Frontline's records and other data available from
third parties. Although Frontline believes 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 Frontline's control, you cannot be assured that Frontline
will achieve or accomplish these expectations, beliefs or projections. Frontline
undertakes no duty to update any forward-looking statement to conform the
statement to actual results or changes in expectations.
Important factors that, in Frontline's view, could cause actual results to
differ materially from those discussed in the forward-looking statements
include, without limitation: the strength of world economies and currencies,
general market conditions, including fluctuations in charterhire rates and
vessel values, changes in demand in the tanker market, including but not limited
to changes in OPEC's petroleum production levels and world wide oil consumption
and storage, changes in Frontline's operating expenses, including bunker prices,
drydocking and insurance costs, the market for Frontline's vessels, availability
of financing and refinancing, ability to comply with covenants in such financing
arrangements, failure of counterparties to fully perform their contracts with
us, 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, vessel breakdowns,
instances of off-hire and other important factors. For a more complete
discussion of these and other risks and uncertainties associated with
Frontline's business, please refer to Frontline's filings with the Securities
and Exchange Commission, including, but not limited to, its annual report on
Form 20-F.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters 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: Frontline Ltd. via Thomson Reuters ONE
[HUG#1572033]
Unternehmensinformation / Kurzprofil:
Datum: 16.12.2011 - 12:20 Uhr
Sprache: Deutsch
News-ID 97918
Anzahl Zeichen: 7282
contact information:
Town:
Hamilton
Kategorie:
Business News
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"FRO - Restructuring Update"
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