SFL - Upsize of refinancing, delivery of a newbuilding Suezmax and sale of a single-hull VLCC
(Thomson Reuters ONE) -
Press release from Ship Finance International Limited, March 18, 2010
Ship Finance International Limited (NYSE:SFL) ("Ship Finance" or the "Company"),
today announced that it has agreed with a syndicate of leading international
banks to upsize the planned refinancing of 26 vessels on charter to Frontline by
$50 million to $725 million.
The background for the increase is the significant oversubscription in the
banking market, combined with conservative leverage on underlying asset values.
The upsize will not affect other terms and closing of the refinancing is
expected to be finalized within March 2010.
In addition, the Company announced that is has today taken delivery of the
newbuilding Suezmax Everbright from the shipyard. This is a sister vessel of the
Suezmax Glorycrown which was delivered from the shipyard in November 2009, and
both vessel are employed on 5-year bareboat charters to an affiliate of North
China Shipping Holdings Co. Ltd. ("North China")
The delivered cost price per vessel is approximately $70 million, and Ship
Finance has received $40.5 million net upfront per vessel from North China. In
addition, the Company has secured $42.6 million financing per vessel, and the
net effect of this is a significant positive cash contribution. There was a book
gain of approximately $24.5 million relating to the delivery of the first vessel
in the fourth quarter, and we expect a similar effect also with respect to the
delivery of the second vessel in this quarter.
Ship Finance has also agreed to sell the single-hull VLCC Golden River to an
unrelated third party for a net sales price of approximately $12.6 million.
Delivery to the new owner is expected to take place in April 2010, and Ship
Finance will receive net cash proceeds of approximately $4.7 million after
prepayment of associated debt and compensation to Frontline for the termination
of the current charter.
The reduction of the single-hull tanker exposure is in line with the Company's
strategy of focusing on modern assets in various shipping and offshore segments.
Following this sale, and excluding one vessel previously announced sold on
hire/purchase terms, Ship Finance will have only five non-double hull crude oil
tankers remaining in the fleet.
Ole B. Hjertaker, CEO in Ship Finance Management AS, said in a comment: "The
increase in the loan facility amount demonstrates our standing in the bank
market, and the additional $50 million will further strengthen our ability to
take advantage of opportunities that may arise. In our view, access to both
attractively priced capital and deal opportunities will be instrumental in our
efforts to continue our accretive growth and building the distribution capacity.
We are also very pleased with the delivery of the second newbuilding Suezmax to
North China. In addition to a significant positive cash contribution, we are
also building our charter backlog with quality counterparts, currently totaling
more than $6.8 billion."
March 18, 2010
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Contact Persons:
Ole B. Hjertaker: Chief Executive Officer, Ship Finance Management AS
+47 23114011 / +47 90141243
Magnus T. Valeberg: Vice President, Ship Finance Management AS
+47 23114012 / +47 93440960
About Ship Finance
Ship Finance is a major ship owning company listed on the New York Stock
Exchange (NYSE: SFL). Including newbuildings, the Company has a fleet of 68
vessels, including 31 crude oil tankers (VLCC and Suezmax), two chemical
tankers, eight oil/bulk/ore vessels, one dry-bulk carrier, 9 container vessels,
six offshore supply vessels, one jack-up drilling rigs and three ultra-deepwater
drilling units. The fleet is one of the largest in the world and most of the
vessels are employed on long-term charters. The Company has declared a cash
dividend for 24 consecutive quarters.
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
world wide 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.
[HUG#1395348]
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Datum: 18.03.2010 - 09:18 Uhr
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