Frontline: New Equity Distribution Agreement
Bermuda-based Frontline Ltd. — one of the world’s largest oil tanker shipping company — has announced that it has entered into an equity distribution agreement with Morgan Stanley & Co. LLC, under which the firm may, at any time and from time to time, offer and sell new ordinary shares having aggregate sales proceeds of up to $40 million through Morgan Stanley in an at-the-market offering.
Frontline expects to use proceeds from this offering for general corporate purposes and to supplement its working capital requirements.
A company spokesperson said sales of Frontline’s ordinary shares, if any, will be made by means of ordinary brokers’ transactions on the New York Stock Exchange, or otherwise at market prices prevailing at the time of sale, at prices related to the prevailing market prices, or at negotiated prices.
Based in Hamilton and controlled by Norwegian-born Cypriot shipping tycoon John Fredriksen, Frontline’s primary business is transporting crude oil.
As of 2008 the company had one of the world’s largest tanker fleets consisting of 82 Very Large Crude Carriers [VLCCs], Suezmax and Suezmax ore-bulk-oil [OBO] carriers with 18 more on order.
