Ship Finance terminates tender offer for 8½% senior notes due 2013

By Marisa Wong

Madison, Wis., Nov. 22 - Ship Finance International Ltd. said it has terminated the previously announced tender offer and consent solicitation for its $298.1 million of outstanding 8½% senior notes due Dec. 15, 2013.

The offer began on Nov. 15 and was scheduled to expire on Dec. 14.

Ship Finance said it ended the tender offer because of weakening market conditions in the debt capital markets that caused it to suspend its public offering of up to $400 million of senior unsecured notes due 2020, the proceeds of which were to be used to fund the tender offer.

The company said it had initiated the financing to opportunistically capitalize on the strong market conditions in the debt capital markets by refinancing its existing senior notes early.

The 8½% notes will not be due for another three years, and the company currently has the option to call the notes on 30-day notice at 101.417%, reducing to 100% in Dec. 15, 2011 and thereafter.

None of the 8½% notes was purchased in the offer and any of the notes previously tendered will be promptly returned to their holders.

Ship Finance is a Hamilton, Bermuda-based maritime company.

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