FRO - New $500.1 Million Term Loan Facility
17 December 2015 - 6:40PM
Frontline Ltd. (the "Company" or "Frontline")
today announced that subsidiaries of Frontline have signed a new
$500.1 million senior secured term loan facility ("New Facility")
with DNB Bank ASA, Nordea Bank Norge ASA, ABN AMRO Bank NV, ING
Bank NV, Skandinaviska Enskilda Banken AB (publ) (SEB), Danske Bank
A/S and Credit Suisse AG. DNB is the facility agent.
The New Facility will mature in
December 2020 and will carry a rate of LIBOR plus a margin of 190
bps. The proceeds of the New Facility will be used to refinance
four existing bank facilities of approximately $378 million in
aggregate and repay outstanding amounts owed to Ship Finance
International Limited of approximately $113 million.
The New Facility will be secured
by six VLCC's and six Suezmax tankers with an average age of 4.6
years and it will have an amortization profile of 13.4 years.
In addition, the margin on the
$466.5 million term loan facility, financing 16 product tankers,
will be reduced to 190 bps.
The refinancing and amendments are
expected to give a positive cash and P&L effect in 2016 alone
of approximately $22 million and $7 million, respectively,
and the average daily cash cost breakeven TCE rates on the current
operating fleet of 43 owned or leased vessels is estimated to be
reduced by approximately $1,400 per day.
Robert Hvide Macleod, Chief
Executive Officer of Frontline Management AS, commented: "The terms
achieved in the refinancing and related amendments improve our cash
flow and lower our cash breakeven rates further. The terms clearly
demonstrate the strong support we have from our relationship
banks."
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
December 16, 2015
Questions should be directed
to:
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. Forward-looking
statements 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, but not limited to "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, many of which are based, in turn, upon further
assumptions. Although Frontline believes 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 the control of
Frontline, Frontline cannot assure you that they will achieve or
accomplish these expectations, beliefs or projections. The
information set forth herein speaks only as of the date hereof, and
Frontline disclaims any intention or obligation to update any
forward-looking statements as a result of developments occurring
after the date of this communication.
This information is subject
to the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX 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
HUG#1974232
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