Ship Finance to price $250 million five-year convertibles to yield 3.25%-3.75%, up 33%

By Rebecca Melvin

New York, Jan. 24 - Ship Finance International Ltd. launched an overnight offering of $250 million of five-year convertible senior notes that was seen pricing ahead of the market open Friday at a yield of 3.25% to 3.75% with an initial conversion premium of 33%, according to a syndicate source.

The registered, off-the-shelf deal was coming concurrently with a $100 million common stock borrow facility.

ABG Sundal Collier Inc. and Deutsche Bank Securities Inc. were the bookrunners for the offering of notes, with ABG Sundal as the left lead bookrunner. Deutsche Bank was acting as underwriter for the stock offering.

The notes are non-callable for life. There is takeover protection.

Proceeds will be used to redeem or repurchase all of the company's outstanding 8.5% senior notes due 2013. Remaining proceeds will be used for general corporate purposes, including working capital.

Hamilton, Bermuda-based Ship Finance is a provider of specialized ocean going vessels servicing the energy industry.

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