FRO - Announces Debt-for-Equity Exchange
October 11 2013 - 9:08AM
Frontline Ltd. (NYSE:FRO)
("Frontline" or the "Company") today announced that it has entered
into a private agreement to exchange $25 million of the outstanding
principal amount of the Company's 4.5% Convertible Bond Issue
2010/2015 (the "Bonds") for an aggregate of approximately 5.8
million shares at an exchange price of $2.41 per share, the closing
price of the Company's shares on the New York Stock Exchange on
October 10, 2013, and a cash payment of $2,250,000. In
addition, under the exchange agreement, Frontline has agreed to
issue, on October 18, 2013, up to an additional 1.2 million shares
to the holders of the Bonds based on an agreed formula if the 5-day
volume-weighted average price (VWAP) of the Company's shares, for
the period ending October 17, 2013, is lower than the exchange
price, subject to a minimum VWAP price of $2.00 per share.
The issuance of the common shares
to the holders of the Bonds is expected to close on October 16,
2013.
October 11, 2013
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Questions should be directed to:
Jens Martin Jensen: Chief Executive Officer, Frontline Management
AS
+47 23 11 40 00
Inger M. Klemp: Chief Financial Officer, Frontline Management
AS
+47 23 11 40 00
FORWARD LOOKING
STATEMENTS
This report contains
forward-looking statements including but not limited to statements
regarding the Company's financing activities and other future
activities. These forward-looking statements are subject to risks
and uncertainties, and actual results may differ materially.
Certain factors that may affect actual results to differ materially
include, without limitation, our ability to complete and a delay in
completing the debt-for-equity exchange described above. Please
refer to Frontline's SEC filings for more information on the other
factors that could cause actual results to differ materially from
expectations, specifically the sections titled "Risk Factors" and
"Forward-Looking Statements" in the Company's Annual Report on Form
20-F.
This information is subject
of the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.
This
announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: Frontline Ltd. via Thomson Reuters ONE
HUG#1735058
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