Frontline Ltd. (NYSE/OSE: FRO) (the "
Company") is
pleased to announce that the offering (the
"
Offering") of new shares (the "
New
Shares") announced on December 8, 2016, has been
successfully completed at USD 7.45 per New Share (equalling NOK
62.80 at a USD/NOK exchange rate of 8.43), raising gross proceeds
of USD 100 million (approximately NOK 843 million) through the
issuance of 13,422,819 New Shares. The Offering was significantly
oversubscribed.
Due to very strong demand, the Company's largest shareholder,
Hemen Holding Ltd. ("Hemen"), has agreed to be
allocated 1,342,281 New Shares in the Offering, corresponding to 10
per cent of the Offering. Hemen will own an aggregate of 82,145,703
shares in the Company upon completion of the Offering, equalling
approximately 48.4 per cent of the Company's shares and votes.
Notifications of allocation of New Shares will be distributed on
or about December 9, 2016. The due date for payment for allocated
New Shares is expected to be December 16, 2016.
Subject to full payment of the New Shares, delivery of the New
Shares allocated in the Offering is expected to be delivered to the
subscribers in the Offering on or about December 16, 2016 and to be
registered in the Norwegian Central Securities Depository (VPS)
with the Company's ISIN BMG3682E1921 and commence to trade under
the Company's ordinary trading symbol "FRO" and become tradable on
the Oslo Stock Exchange and the New York Stock Exchange on or about
December 16, 2016.
The New Shares will not give right to receive the USD 0.10
dividend declared by the Company on 28 November 2016 with ex-date
13 December 2016 on the New York Stock Exchange and 14 December
2016 on the Oslo Stock Exchange and payment date on or about 22
December 2016.
Following issuance of the New Shares the Company will have
169,809,325 issued common shares each having a par value of USD
1.00.
The net proceeds from the Offering will be used to
opportunistically fund growth opportunities through vessel
acquisitions and for general corporate purposes.
This announcement does not constitute an offer to sell or the
solicitation of an offer to buy securities and shall not constitute
an offer, solicitation or sale in any jurisdiction in which such
offer, solicitation or sale is unlawful. The Offering is being made
by means of an application agreement, a term sheet and a prospectus
and related prospectus supplements which form a part of the
Company's effective Registration Statement on Form F-3
(Registration No. 333-204884) that has previously been filed with
the US Securities and Exchange Commission (the "SEC"). Copies of
the offering documentation may be obtained by contacting Arctic
Securities at telephone: +47 21 01 30 40 or e-mail:
settlement@arctic.com.
Arctic Securities AS and Arctic Securities LLC have acted as
sole manager in the Offering.
December 9, 2016
The Board of Directors Frontline Ltd. Hamilton, Bermuda
Contacts:
Robert Hvide Macleod: Chief Executive Officer, Frontline
Management AS
+47 23 11 40 84
Inger M. Klemp: Chief Financial Officer, Frontline Management
AS
+47 23 11 40 76
***Forward-Looking Statements
Matters discussed in this press release may constitute
forward-looking statements. The Private Securities Litigation
Reform Act of 1995 provides safe harbor protections for
forward-looking statements, which include statements concerning
plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements, which are other
than statements of historical facts. Words such as "believe",
"anticipate", "intends", "estimate", "forecast", "project", "plan",
"potential", "may", "should", "expect", "pending" and similar
expressions identify forward-looking statements.
The forward-looking statements in this press release are based
upon various assumptions. Although we believe that these
assumptions were reasonable when made, because these assumptions
are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections. The
information set forth herein speaks only as of the date hereof, and
we disclaim any intention or obligation to update any
forward-looking statements as a result of developments occurring
after the date of this communication.
In addition to these important factors and matters discussed
elsewhere herein, important factors that, in our view, could cause
actual results to differ materially from those discussed in the
forward-looking statements include the strength of world economies,
fluctuations in currencies and interest rates, general market
conditions, including fluctuations in charter hire rates and vessel
values, changes in demand in the dry bulk market, changes in our
operating expenses, including bunker prices, drydocking and
insurance costs, the market for our vessels, availability of
financing and refinancing, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, general domestic and
international political conditions, potential disruption of
shipping routes due to accidents, political events or acts by
terrorists, and other important factors described from time to time
in the reports filed by the Company with the Securities and
Exchange Commission.
This information is subject to the disclosure requirements of
section 5-12 of the Norwegian Securities Trading Act.
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