Frontline Completes $21.5M Placement and Purchase

Wednesday, July 14, 2004
Frontline Ltd., has completed a private placement of $21.5M in new equity, by issuing 600,000 shares to several institutional investors at a purchase price of NOK 246 per share. Carnegie ASA, Enskilda Securities ASA and Fearnley Fonds ASA acted as placement agents for the issue. The proceeds from the offering will be used to equity finance the acquisition of three Suezmax tankers. The vessels are built in 1989 - 1990. The purchase price for the vessels are totally USD 66.3 million. The vessels are sister vessels of four vessels already controlled by Frontline. The deal should not be seen as a strategic move away from modern double hull tonnage, but should be seen as an opportunistic deal to maximize Frontline's cash flow in the current strong tanker market. Based on achieving the rate which is indicated by the forward market for the next 18 months for modern Suezmaxes i.e. TC Income USD 37,000 per day, the vessels will be written down to today's scrap level before end 2005. The existing rules allow trading of the vessels until 2010. The sister vessels controlled by Frontline have in the first half of 2004 achieved a TC income of USD 42,000 per day. The Board anticipates that the deal will lower the cash break even, improve earnings per share and increase the dividend capacity in Frontline Ltd.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Lower Large Dry Bulk Rates drag Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Thursday dragged down by lower demand for larger vessel segments.

EGAS: Egypt to tender for 10 LNG Cargoes

Egypt will tender next week to import 10 cargoes of liquefied natural gas (LNG) for delivery in July and August, an official from the state gas company, EGAS, said on Thursday.

Asia Dry Bulk-Capesize Rates Could Climb

More coal cargoes, rising oil prices could support rates. Freight rates for large capesize dry cargo ships on key Asian routes are likely to rise next week on

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0742 sec (13 req/sec)