Frontline Ltd. (NYSE/OSE: FRO) (the "Company") is pleased to announce that the offering (the
"Offering") of new shares (the "New Shares") announced on December 8, 2016, has been
successfully completed at USD 7.45 per New Share (equalling NOK
62.80 at a USD/NOK exchange rate of 8.43), raising gross proceeds
of USD 100 million (approximately NOK 843 million) through the
issuance of 13,422,819 New Shares. The Offering was significantly
oversubscribed.
Due to very strong demand, the Company's largest
shareholder, Hemen Holding Ltd. ("Hemen"), has
agreed to be allocated 1,342,281 New Shares in the Offering,
corresponding to 10 per cent of the Offering. Hemen will own an
aggregate of 82,145,703 shares in the Company upon completion of
the Offering, equalling approximately 48.4 per cent of the
Company's shares and votes.
Notifications of allocation of New Shares will be
distributed on or about December 9, 2016. The due date for payment
for allocated New Shares is expected to be December 16, 2016.
Subject to full payment of the New Shares,
delivery of the New Shares allocated in the Offering is expected to
be delivered to the subscribers in the Offering on or about
December 16, 2016 and to be registered in the Norwegian Central
Securities Depository (VPS) with the Company's ISIN BMG3682E1921
and commence to trade under the Company's ordinary trading symbol
"FRO" and become tradable on the Oslo Stock Exchange and the New
York Stock Exchange on or about December 16, 2016.
The New Shares will not give right to receive the
USD 0.10 dividend declared by the Company on 28 November 2016 with
ex-date 13 December 2016 on the New York Stock Exchange and 14
December 2016 on the Oslo Stock Exchange and payment date on or
about 22 December 2016.
Following issuance of the New Shares the Company
will have 169,809,325 issued common shares each having a par value
of USD 1.00.
The net proceeds from the Offering will be used to
opportunistically fund growth opportunities through vessel
acquisitions and for general corporate purposes.
This announcement does not constitute an offer to
sell or the solicitation of an offer to buy securities and shall
not constitute an offer, solicitation or sale in any jurisdiction
in which such offer, solicitation or sale is unlawful. The Offering
is being made by means of an application agreement, a term sheet
and a prospectus and related prospectus supplements which form a
part of the Company's effective Registration Statement on Form F-3
(Registration No. 333-204884) that has previously been filed with
the US Securities and Exchange Commission (the "SEC"). Copies of
the offering documentation may be obtained by contacting Arctic
Securities at telephone: +47 21 01 30 40 or e-mail:
settlement@arctic.com.
Arctic Securities AS and Arctic Securities LLC
have acted as sole manager in the Offering.
December 9, 2016
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Contacts:
Robert Hvide Macleod: Chief Executive Officer,
Frontline Management AS
+47 23 11 40 84
Inger M. Klemp: Chief Financial Officer, Frontline
Management AS
+47 23 11 40 76
***
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements, which include statements concerning
plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements, which are other
than statements of historical facts. Words such as "believe",
"anticipate", "intends", "estimate", "forecast", "project", "plan",
"potential", "may", "should", "expect", "pending" and similar
expressions identify forward-looking statements.
The forward-looking statements in this press
release are based upon various assumptions. Although we
believe that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond our control, we cannot assure you that we
will achieve or accomplish these expectations, beliefs or
projections. The information set forth herein speaks only as of the
date hereof, and we disclaim any intention or obligation to update
any forward-looking statements as a result of developments
occurring after the date of this communication.
In addition to these important factors and matters
discussed elsewhere herein, important factors that, in our view,
could cause actual results to differ materially from those
discussed in the forward-looking statements include the strength of
world economies, fluctuations in currencies and interest rates,
general market conditions, including fluctuations in charter hire
rates and vessel values, changes in demand in the dry bulk market,
changes in our operating expenses, including bunker prices,
drydocking and insurance costs, the market for our vessels,
availability of financing and refinancing, changes in governmental
rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general
domestic and international political conditions, potential
disruption of shipping routes due to accidents, political events or
acts by terrorists, and other important factors described from time
to time in the reports filed by the Company with the Securities and
Exchange Commission.
This information is subject to the disclosure
requirements of section 5-12 of the Norwegian Securities Trading
Act.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Frontline Ltd. via Globenewswire
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