Business Context and Reporting Period
This Form 6-K filing by Ship Finance International Limited (SFL Corp Ltd.) covers the month of September 2014. The report serves to disclose a material corporate action regarding the adjustment of conversion prices for the Company's outstanding convertible notes, triggered by a recent dividend declaration.
Key Financial Metrics and Debt Structure
The filing details the terms of two Senior Unsecured Convertible Notes outstanding as of September 10, 2014:
- Note 1: Issued January 30, 2013; Principal amount of USD 350,000,000; Maturity February 1, 2018; Coupon 3.25%.
- Note 2: Issued February 8, 2010; Principal amount of USD 125,000,000; Maturity February 10, 2016; Coupon 3.75%.
The filing does not provide specific values for revenue, profit, cash flow, operating margins, or overall liquidity positions.
Material Changes
The primary material change reported is the adjustment of conversion prices for both convertible notes. This adjustment was executed pursuant to loan agreements following the Company's declaration of a dividend of USD 0.41 per share, with shares trading ex-dividend on September 10, 2014.
- Note 1 Adjusted Conversion Price: USD 19.1411 (as of September 10, 2014).
- Note 2 Adjusted Conversion Price: USD 18.95 (as of September 10, 2014).
Guidance, Outlook, and Contingencies
The filing contains no forward-looking guidance, management commentary on future operations, or discussion of general risks. A specific contingency is noted regarding the adjusted conversion prices: they are subject to consent by the trustee.
Investor Verification Checklist
- Verify that the trustee has provided the necessary consent for the adjusted conversion prices of USD 19.1411 and USD 18.95.
- Confirm the ex-dividend trading status of the shares as of September 10, 2014.
- Review the specific loan agreements to understand the mechanics of the conversion price adjustment formula.