Frontline in talks for $547 million financing to acquire tankers

By Marisa Wong

Los Angeles, Aug. 23 – Frontline Ltd. said it is in discussions with leading lending banks who have indicated an interest in providing financing for the company’s planned acquisition of Suezmax tankers from Trafigura Maritime Logistics.

An affiliate of Hemen Holding Ltd., Frontline’s largest shareholder, has offered a $547 million commitment at closing of the acquisition through a three-year facility at attractive terms, the company said in a press release.

Frontline plans to acquire ten 2019 Korean-built Suezmax tankers for a consideration consisting of 16,035,856 ordinary shares of Frontline at an agreed price of $8.00 per share issuable upon signing and a cash amount ranging from $538 million to $547 million payable upon closing.

The transaction is expected to close as early as Nov. 15 but no later than March 15, 2020.

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

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