Ship Finance offers $200 million five-year convertible notes at 5.25%-5.75%, up 20%-25%

By Stephanie N. Rotondo

Seattle, Sept. 29 – Ship Finance International Ltd. is offering $200 million of five-year convertible senior notes with an initial conversion premium of 20% to 25%, the company said in a press release on Thursday.

Yield talk is 5.25% to 5.75%, according to a market source.

Pricing is expected before the market opens on Friday. A group investor call was held Thursday after the market closed.

Jefferies LLC, ABG Sundal Collier and Morgan Stanley & Co. LLC are the joint bookrunners. Seaport Global Securities LLC and Clarksons Platou Securities Inc. are the co-managers.

Holders can convert the notes at any time prior to the close of business on the second scheduled trading day prior to the Oct. 15, 2021 maturity date. The conversion will come in the form of stock, cash or a combination thereof, at the company’s option.

The conversion rate may increase in connection with holders who require a conversion upon a fundamental change. Additionally, the company can elect to redeem any and all outstanding notes at any time prior to the 61st trading day preceding the maturity date, should 90% or more of the debt be repurchased or redeemed by that time.

Proceeds will be used for general corporate purposes, including working capital and the repurchase of all or a portion of its existing 3.25% convertible notes due 2018.

Concurrently with the offering, a subsidiary will enter into an agreement with affiliates of Jefferies to lend up to 8 million of the company’s common shares. Purchasers of the notes may also sell up to 8 million of the shares, using the short position to hedge their respective investments.

Neither the company, its subsidiaries nor its shareholders will receive any proceeds from the sale of such securities.

Ship Finance is a Bermuda-based owner and operator of vessels, including crude oil tankers, container vessels and drybulk carriers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.