Ship Finance tenders for $298.1 million of 8½% senior notes due 2013

By Susanna Moon

Chicago, Nov. 15 - Ship Finance International Ltd. began a tender offer and consent solicitation for its $298.1 million outstanding 8½% senior notes due Dec. 15, 2013, according to a 424B3 filing with the Securities and Exchange Commission.

The company said it will pay $1,016.67 per $1,000 principal amount plus accrued interest, including a consent payment of $2.50, for notes tendered by 5 p.m. ET on Nov. 29, the consent payment deadline.

Holders must tender their notes by the consent date to receive the consent fee.

The tender offer will end at 11:59 p.m. ET on Dec. 14.

The offer is subject to the receipt of tenders and consents from holders of at least a majority of the notes and the completion of a $400 million offering of 10-year notes.

If the conditions to the offer have been satisfied by the consent payment deadline, the company expects to accept for purchase all notes tendered by that deadline and to purchase them promptly.

Ship Finance said that if less than 100% of the notes are tendered prior to the consent payment deadline, it plans to redeem the remaining bonds.

Prospect News reported that the company began a roadshow Nov. 15 for a $400 million public offering of non-callable 10-year senior notes (expected ratings B1/B+).

The Hamilton, Bermuda-based maritime company will use the proceeds to repay debt, including tendering for the 8½% notes, and for general corporate purposes.

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