Business Context and Reporting Period
This Form 6-K filing by Ship Finance International Limited (SFL Corp Ltd.) covers the period of September 2017, specifically dated September 14, 2017. The filing serves to disclose a corporate action regarding the adjustment of conversion prices for the Company's outstanding convertible notes.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, or liquidity metrics. It focuses exclusively on debt instrument terms. Key debt details include:
- Senior Unsecured Convertible Notes (2016 Issue): Total issue amount of USD 225,000,000; Maturity October 15, 2021; Coupon 5.75%; Adjusted Conversion Rate 59.5336.
- Senior Unsecured Convertible Notes (2013 Issue): Total issue amount of USD 350,000,000; Outstanding amount USD 184,202,000; Maturity February 1, 2018; Coupon 3.25%; Adjusted Conversion Price USD 13.5535.
Material Changes
The material change reported is the adjustment of conversion prices and rates for two series of 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 September 14, 2017. The adjustments are made pursuant to the relevant loan agreements.
Guidance, Outlook, and Risks
The filing contains no management commentary, financial guidance, or outlook. The primary contingency noted is that the adjusted conversion rates and prices are subject to consent by the trustee.
Investor Verification Checklist
- Verify the final consent of the trustee regarding the adjusted conversion price of USD 13.5535 and rate of 59.5336.
- Confirm the exact ex-dividend trading date and the impact of the USD 0.35 dividend on shareholder value.
- Review the outstanding principal balance of the 2013 notes (USD 184,202,000) to assess near-term maturity obligations in February 2018.