Business Context and Reporting Period
This Form 6-K filing by Ship Finance International Limited (SFL Corp Ltd.) covers the month of December 2018. The report, dated December 11, 2018, serves to disclose a corporate action regarding the adjustment of conversion rates for the Company's outstanding convertible notes.
Key Financial Metrics
The filing does not provide standard financial performance metrics such as revenue, profit, cash flow, margins, or liquidity ratios. The document focuses exclusively on debt instrument terms.
| Instrument | Issue Amount | Coupon | Maturity | Adjusted Conversion Rate |
|---|---|---|---|---|
| Senior Unsecured Convertible Notes (2018) | USD 164,000,000 | 4.875% | May 1, 2023 | 57.0418 |
| Senior Unsecured Convertible Notes (2016) | USD 225,000,000 | 5.75% | October 15, 2021 | 62.2741 |
Material Changes
The primary material change disclosed is the adjustment of conversion rates for two series of Senior Unsecured Convertible Notes. This adjustment was triggered by the Company's declaration of a dividend of USD 0.35 per share, with shares trading ex-dividend on the New York Stock Exchange as of December 11, 2018. The adjustments were made pursuant to the relevant loan agreements.
Outlook, Risks, and Contingencies
The filing notes that the adjusted conversion rates are subject to consent by the trustee. No forward-looking guidance, management commentary on future operations, or discussion of general business risks is included in this specific report.
Investor Verification Checklist
- Verify the final approval of the adjusted conversion rates by the trustee.
- Confirm the exact ex-dividend date and dividend amount (USD 0.35) to ensure the conversion rate calculation aligns with the loan agreements.
- Review the specific terms of the 2016 and 2018 convertible note indentures regarding dividend adjustments.