Business Context and Reporting Period
This Form 6-K filing by Ship Finance International Limited (SFL Corp Ltd.) covers the month of December 2016, specifically dated December 8, 2016. The filing serves to disclose a corporate action regarding the adjustment of conversion prices for outstanding convertible notes following a dividend declaration.
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:
- Dividend Declaration: USD 0.45 per share (triggering the conversion price adjustment).
- Convertible Note Series 1 (2016):
- Issue Amount: USD 225,000,000
- Coupon: 5.75%
- Maturity: October 15, 2021
- Adjusted Conversion Rate: 57.1296 (as of Dec 8, 2016)
- Convertible Note Series 2 (2013):
- Outstanding Amount: USD 184,202,000
- Coupon: 3.25%
- Maturity: February 1, 2018
- Adjusted Conversion Price: USD 14.8435 (as of Dec 8, 2016)
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 December 8, 2016.
Outlook, Risks, and Contingencies
The filing notes that the adjusted conversion rates and prices are subject to consent by the trustee. No forward-looking guidance, management commentary on future operations, or specific risk factors beyond the standard terms of the debt instruments are provided in this document.
Investor Verification Checklist
- Verify the final consent of the trustee regarding the adjusted conversion price of USD 14.8435 and rate of 57.1296.
- Confirm the exact ex-dividend trading date and the impact on share price relative to the USD 0.45 dividend.
- Review the outstanding principal balance of the 2013 notes (USD 184,202,000) to assess total debt exposure.
- Check subsequent filings for any further adjustments to these notes or changes in the dividend policy.