Business Context and Reporting Period
This Form 6-K filing by Ship Finance International Limited (SFL Corp Ltd.) was submitted on September 15, 2014, for the month of September 2014. The filing serves to distribute a press release dated June 10, 2014, regarding a corporate action affecting the company's outstanding debt instruments.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, or liquidity metrics. It focuses exclusively on the terms of two specific debt instruments:
- Senior Unsecured Convertible Notes (2013 Issue): $350 million principal, 3.25% coupon, maturing February 1, 2018.
- Senior Unsecured Convertible Notes (2010 Issue): $125 million principal, 3.75% coupon, maturing February 10, 2016.
Material Changes
The primary material change reported is the adjustment of conversion prices for the two outstanding convertible notes. This adjustment was triggered by the company's declaration of a cash dividend of $0.41 per share, with shares trading ex-dividend on June 10, 2014. The adjusted conversion prices are:
- 2013 Notes: Adjusted to $19.5487.
- 2010 Notes: Adjusted to $19.36.
These adjustments are subject to consent by the trustee.
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 conversion price adjustments are subject to trustee consent.
Investor Verification Checklist
- Verify the final confirmation of trustee consent for the adjusted conversion prices.
- Confirm the impact of the $0.41 per share dividend on the company's cash position and liquidity.
- Review the full loan agreements to understand the specific mechanics of the conversion price adjustment formula.