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Stock Market & Financial Investment News

News Breaks
May 24, 2013
07:39 EDTSFLShip Finance adds four 8,700 TEU newbuilding container vessels
Ship Finance announced that the company has agreed to build four 8,700 TEU newbuilding container vessels at a major shipyard in Korea. The contract price is attractive and the vessels are scheduled to be delivered in 4Q14 and 1Q15.
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July 24, 2014
07:16 EDTSFLShip Finance announces sale of 3 older VLCCs to Frontline
Ship Finance (SFL) announced that it has agreed to sell the 1999 built VLCCs Front Opalia, Front Comanche and Front Commerce to an unrelated third party. The company has simultaneously agreed to terminate the corresponding charter parties with a subsidiary of Frontline (FRO). The vessels are expected to be delivered to the new owners in the Q4 and Ship Finance expects to receive cash proceeds of approximately $77.5M, including approximately $10.5M upfront payment from Frontline. In addition, we will receive approximately $48.3M in 7.25% amortizing notes from Frontline. The amortization profile and maturity of the notes will match the current charters for the three vessels, with reduced rates until 2015 and full rates from 2016. Divesting of older vessels is a part of the company's strategy to renew and diversify the fleet, and the proceeds is expected to be reinvested in other assets. Following this sale, the number of vessels on charter to Frontline will be reduced to 17 vessels, including 12 VLCCs and five Suezmax crude oil carriers.
07:14 EDTSFLFrontline announces termination of charter-in contracts of VLCCs
Frontline (FRO) has agreed with Ship Finance International (SFL) to terminate the long term charter parties for the 1999 built VLCCs Front Opalia, Front Comanche and Front Commerce and Ship Finance has simultaneously sold the vessels to unrelated third parties. The charter parties are expected to terminate in Q4. The decision to terminate the long term charter parties was taken in view of the required investment to take the vessels through the 15 year special survey. Frontline has agreed an aggregate compensation payment to Ship Finance of approximately $58.8M for the early termination of the charter parties, of which approximately $10.5M will be paid upon termination and the balance will be recorded as notes payable, with similar amortisation profiles to the current lease obligations, with reduced rates until December 2015 and full rates from 2016. As of June 30, the company has capital lease obligations to Ship Finance of $101.5M and $608.3M for these three vessels and the remaining 12 VLCCs and five Suezmax tankers, respectively.

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