Business Context and Reporting Period
This Form 6-K filing by Ship Finance International Limited (SFL Corp Ltd.) covers the month of December 2017. The report, dated December 8, 2017, 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. The following debt details are disclosed:
- Senior Unsecured Convertible Notes (2016 Issue): Total issue amount of USD 225,000,000; Maturity October 15, 2021; Coupon 5.75%; Adjusted Conversion Rate 60.0416.
- Senior Unsecured Convertible Notes (2013 Issue): Original issue amount of USD 350,000,000; Outstanding amount USD 63,218,000; Maturity February 1, 2018; Coupon 3.25%; Adjusted Conversion Price USD 13.2418.
Material Changes
The primary 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 December 8, 2017.
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 13.2418 and conversion rate of 60.0416.
- Confirm the impact of the USD 0.35 per share dividend on shareholder equity and cash reserves.
- Review the maturity schedule for the 2013 notes (February 1, 2018) given the outstanding balance of USD 63,218,000.