Business Context and Reporting Period
This Form 6-K filing by Ship Finance International Limited (SFL Corp Ltd.) covers the month of March 2017, with the report dated March 14, 2017. The filing serves to disclose a material event 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 58.0285.
- 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 14.3886.
Material Changes
The primary material change 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 0.45 per share, with shares trading ex-dividend on March 14, 2017. The changes were executed pursuant to the relevant loan agreements.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future operations, or discussion of general business risks. The only contingency noted is that the adjusted conversion terms are subject to consent by the trustee.
Investor Verification Checklist
- Verify the final consent of the trustee regarding the adjusted conversion price of USD 14.3886 and rate of 58.0285.
- Confirm the impact of the USD 0.45 per share dividend on the Company's cash position and future liquidity.
- Review the outstanding principal balance of USD 184,202,000 for the 2013 notes maturing in February 2018.
- Check subsequent filings for any further adjustments to conversion terms or dividend declarations.