Sterne Agee Maintains Neutral Rating on Frontline

A report from Sterne Agee reiterates its Neutral rating on Frontline FRO. The report states, “As we expected, FRO last week announced its intention to effect a restructuring that will enable it to meet its obligations. As we indicated in our Tanker Update: No Near-Term Recovery On The Horizon note dated October 6, 2011, FRO will face a cash shortfall of well over $100M by year-end 2012, a shortfall that will be addressed in part by an equity raise.” FRO closed yesterday at $2.92.