By Rebecca Melvin
New York, Jan. 25 - Ship Finance International Ltd. priced an upsized $350 million of five-year convertible senior notes ahead of the market open Friday at par to yield 3.25% with an initial conversion premium of 33%, according to a syndicate source.
Initially the overnight deal was seen at $250 million in size.
Pricing came at the rich end of coupon talk, which was 3.25% to 3.75%, and at the talked premium point.
The registered, off-the-shelf deal came concurrently with a $70 million common stock borrow facility, with shares offered at $16.50 per share.
ABG Sundal Collier Inc. and Deutsche Bank Securities Inc. were the bookrunners for the note offering, with ABG Sundal as the left lead bookrunner, and Deutsche Bank was acting as underwriter for the stock offering.
The notes are non-callable for life. There is takeover protection.
Proceeds will be used to redeem or repurchase all of the company's outstanding 8.5% senior notes due 2013. Remaining proceeds will be used for general corporate purposes, including working capital.
Hamilton, Bermuda-based Ship Finance is a provider of specialized ocean going vessels servicing the energy industry.
| Issuer: | Ship Finance International Ltd.
|
| Issue: | Convertible senior notes
|
| Amount: | $350 million, upsized from $250 million
|
| Maturity: | Feb. 1, 2018
|
| Concurrent offering: | $70 million secondary stock offering at $16.50 per share
|
| Bookrunners: | ABG Sundal Collier Inc., Deutsche Bank Securities Inc.
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 33%
|
| Conversion price: | $21.945
|
| Conversion ratio: | 45.5685
|
| Calls: | Non-callable
|
| Puts: | No
|
| Takeover protection: | Yes
|
| Price talk: | 3.25%-3.75%, up 33%
|
| Pricing date: | Jan. 25
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | NYSE: SFL
|
| Stock price: | $17.52 at close Jan. 24
|
| Market capitalization: | $1.3 billion
|
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