Frontline signs new $500.1 million term loan, amends existing loan

By Tali Rackner

Norfolk, Va., Dec. 17 – Frontline Ltd. said its subsidiaries have signed a new $500.1 million five-year senior secured term loan facility with DNB Bank ASA as agent, according to a press release.

The new facility will mature in December 2020.

Interest is equal to Libor plus 190 basis points.

Proceeds will be used to refinance roughly $378 million of four existing bank facilities and repay about $113 million of outstanding amounts owed to Ship Finance International Ltd.

In addition, the company reduced the margin on its $466.5 million term loan facility to Libor plus 190 bps. This facility finances 16 product tankers.

"The terms achieved in the refinancing and related amendments improve our cash flow and lower our cash breakeven rates further,” Robert Hvide Macleod, chief executive officer of Frontline Management AS, said in the release. “The terms clearly demonstrate the strong support we have from our relationship banks."

Frontline is an Oslo-based oil tanker shipping business incorporated in Bermuda.

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