FRO - New $500.1 Million Term Loan Facility
December 17 2015 - 2:46AM
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.
HUG#1974232
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