Business Context and Reporting Period
This Form 6-K filing by Ship Finance International Limited (SFL Corp Ltd.) covers the month of June 2017, specifically dated June 14, 2017. The filing 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 and a recent dividend declaration.
- Dividend Declaration: USD 0.45 per share (triggering the conversion price adjustment).
- Convertible Note 1 (2016 Issue):
- Issue Amount: USD 225,000,000
- Coupon: 5.75%
- Maturity: October 15, 2021
- Adjusted Conversion Rate: 58.9992 (as of June 14, 2017)
- Convertible Note 2 (2013 Issue):
- Original Issue Amount: USD 350,000,000
- Outstanding Amount: USD 184,202,000
- Coupon: 3.25%
- Maturity: February 1, 2018
- Adjusted Conversion Price: USD 13.9157 (as of June 14, 2017)
Material Changes
The primary material change reported is the adjustment of conversion prices and rates for two series of Senior Unsecured Convertible Notes. This adjustment was executed pursuant to the relevant loan agreements as a direct consequence of the Company declaring a dividend of USD 0.45 per share, with shares trading ex-dividend on the NYSE on June 14, 2017.
Outlook, Risks, and Contingencies
The filing contains no forward-looking guidance, management commentary on future operations, or discussion of general risks. The only contingency noted is that the adjusted conversion rates and prices are subject to consent by the trustee.
Investor Verification Checklist
- Verify the final consent of the trustee regarding the adjusted conversion price of USD 13.9157 and rate of 58.9992.
- Confirm the exact ex-dividend trading date and the impact of the USD 0.45 dividend on shareholder value.
- Review the outstanding balance of the 2013 Convertible Notes (USD 184,202,000) to assess near-term refinancing needs given the February 2018 maturity.
- Check subsequent filings for any further adjustments to the conversion terms.