Business Context and Reporting Period
This Form 6-K filing by Ship Finance International Limited (SFL Corp Ltd.) covers the month of July 2019. The report discloses a material event regarding the adjustment of conversion rates for the Company's outstanding convertible notes, triggered by a dividend declaration.
Key Financial Metrics
The filing does not provide standard financial performance metrics such as revenue, profit, cash flow, or liquidity ratios. The document focuses exclusively on debt instrument terms.
- Convertible Note 1: USD 164,000,000 issue amount; 4.875% coupon; Maturity May 1, 2023; Adjusted Conversion Rate 60.3956.
- Convertible Note 2: USD 225,000,000 issue amount; 5.75% coupon; Maturity October 15, 2021; Adjusted Conversion Rate 63.5664.
Material Changes
The primary material change is the adjustment of conversion rates for two series of Senior Unsecured Convertible Notes. This adjustment was executed pursuant to loan agreements following 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 June 10, 2019.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or discussion of general business risks. A specific contingency is noted: the adjusted conversion rates are subject to consent by the trustee.
Investor Verification Checklist
- Verify the final confirmation of the adjusted conversion rates (60.3956 and 63.5664) upon receipt of trustee consent.
- Confirm the impact of the USD 0.35 per share dividend on the Company's cash position and future liquidity.
- Review the specific terms of the loan agreements to understand the mechanics of future conversion rate adjustments.