Business Context and Reporting Period
This Form 6-K filing by SFL Corporation Ltd. (NYSE: SFL) covers the month of December 2020, with the report dated December 11, 2020. The filing 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.
| Debt Instrument | Issue Amount | Coupon Rate | Maturity Date | Adjusted Conversion Rate |
|---|---|---|---|---|
| Senior Unsecured Convertible Notes (2018) | USD 164,000,000 | 4.875% | May 1, 2023 | 70.5161 |
| Senior Unsecured Convertible Notes (2016) | USD 225,000,000 | 5.75% | October 15, 2021 | 65.8012 |
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 cash dividend of USD 0.15 per share, with shares trading ex-dividend on the New York Stock Exchange as of December 11, 2020. The adjustments were made pursuant to the relevant loan agreements.
Guidance, Outlook, and Risks
The filing contains no management commentary, financial guidance, or outlook for future periods. No specific risks or contingencies are discussed beyond the standard operational context of the dividend declaration. The adjusted conversion rates are noted as being subject to consent by the trustee.
Investor Verification Checklist
- Verify the final consent of the trustee regarding the adjusted conversion rates of 70.5161 and 65.8012.
- Confirm the impact of the USD 0.15 per share dividend on the Company's cash position and liquidity.
- Review the specific terms of the 2016 and 2018 convertible note indentures to understand the mechanics of future conversion rate adjustments.