FRO - Announces Debt-for-Equity Exchange
December 16 2014 - 8:31AM
Frontline Ltd. (NYSE:FRO) ("Frontline" or the
"Company") today announced that it has entered into a private
agreement to exchange $22,500,000 of the outstanding principal
amount of the Company's 4.5% Convertible Bond Issue 2010/2015 (the
"Bonds") for an aggregate of 3,984,375 shares at an exchange
price of $3.12 per share, and a cash payment of $9,562,500
plus accrued interest. In addition, under the exchange
agreement, Frontline has agreed to issue, on December 23, 2014, up
to an additional 760,377 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 December 22,
2014, is lower than the exchange price, subject to a minimum VWAP
price of $2.62 per share.
The issuance of the common shares
to the holders of the Bonds is expected to close on December 19,
2014.
December 16, 2014
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Questions should be directed to:
Robert Hvide Macleod: 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 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#1880721
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