Frontline Issuing Up To $225 Million of Bonds
Frontline Ltd, a Bermuda domiciled tanker company specializing in transportation of crude oil, said today [Mar 26] that it intends to issue up to $225 million in principal amount of convertible bonds with a five-year tenor.
One of the world’s largest oil tanker shipping companies, the Bermuda based company has one of the world’s largest tanker fleets consisting of VLCC, Suezmax and Suezmax OBO carriers. The Company’s Chairman, CEO, and President is Norwegian billionaire John Fredriksen, who is estimated to have a net worth of four billion dollars.
The tanker company said the senior unsecured bonds are convertible into common shares shares and that the bonds are expected to have an annual coupon in the range of 4% to 4.5% and a conversion premium of 30% to 35% over the volume-weighted average price of the company’s shares on the Oslo Stock Exchange.
The proceeds from the Bonds will be used for general corporate purposes, financing of the remaining equity investments in the Company’s newbuilding program and will improve the Company’s ability to react to attractive market opportunities.
ABG Sundal Collier, Arctic Securities and Deutsche Bank are acting as Joint-Lead Managers. ABG Sundal Collier and Deutsche Bank are acting as Joint Boookrunners. First Securities AS and Nordea Bank Norge ASA are acting as Co-Managers.
