Ship Finance Int'l Announces Upsized Offering of Senior Notes from $250M to $350M; Prices 4.2M Common Shares at $16.50/Share
Ship Finance International Limited ("Ship Finance") (NYSE: 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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