Ship Finance International Limited ("Ship Finance") SFL today
announced that it has increased the size of the public offering of its
Convertible Senior Notes due 2018 (the "Notes") announced on January 24, 2013
by $100 million, to a total of $350 million aggregate principal amount.
In addition, Ship Finance announced that Deutsche Bank AG, London Branch (the
"Share Borrower") priced its previously announced fixed-price offering of
approximately 4.2 million common shares, or approximately $70 million in
market value, at $16.50 per share. The Share Borrower, which is an affiliate
of Deutsche Bank Securities Inc., the underwriter for the offering of the
common shares, is borrowing the common shares being offered from a wholly
owned subsidiary of Ship Finance.
The Notes, which are being sold at a price equal to 100% of their principal
amount, will pay interest quarterly at an annual rate of 3.25% and mature on
February 1, 2018. At maturity, Ship Finance will pay the principal amount per
Note plus accrued and unpaid interest in whole in cash, or in part in common
shares and in part in cash, at its election.
The Notes will be convertible into our common shares at an initial conversion
price of $21.9450 per share, which is a 33% premium to the public offering
price per share in the concurrent offering of common shares. Upon conversion,
we will pay or deliver, as the case may be, cash, our common shares, or a
combination of cash or our common shares, at our election, subject to certain
exceptions.
Ship Finance intends to use the net proceeds received from the offering of the
Notes to redeem or repurchase all of its outstanding 8.5% Senior Notes due
2013. Any net proceeds not used to redeem or repurchase the 8.5% Senior Notes
due 2013 will be used for general corporate purposes, including working
capital.
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