HAMILTON, Bermuda, Dec. 17, 2015 (GLOBE NEWSWIRE) -- Frontline Ltd. (the "Company" or "Frontline") today announced that subsidiaries of Frontline have signed a new $500.1 million senior secured term loan facility ("New Facility") with DNB Bank ASA, Nordea Bank Norge ASA, ABN AMRO Bank NV, ING Bank NV, Skandinaviska Enskilda Banken AB (publ) (SEB), Danske Bank A/S and Credit Suisse AG. DNB is the facility agent.
The New Facility will mature in December 2020 and will carry a rate of LIBOR plus a margin of 190 bps. The proceeds of the New Facility will be used to refinance four existing bank facilities of approximately $378 million in aggregate and repay outstanding amounts owed to Ship Finance International Limited of approximately $113 million.
The New Facility will be secured by six VLCC's and six Suezmax tankers with an average age of 4.6 years and it will have an amortization profile of 13.4 years.
In addition, the margin on the $466.5 million term loan facility, financing 16 product tankers, will be reduced to 190 bps.
The refinancing and amendments are expected to give a positive cash and P&L effect in 2016 alone of approximately $22 million and $7 million, respectively, and the average daily cash cost breakeven TCE rates on the current operating fleet of 43 owned or leased vessels is estimated to be reduced by approximately $1,400 per day.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS, commented: "The terms achieved in the refinancing and related amendments improve our cash flow and lower our cash breakeven rates further. The terms clearly demonstrate the strong support we have from our relationship banks."
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
December 16, 2015
Questions should be directed to:
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. Forward-looking statements 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, but not limited to "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, many of which are based, in turn, upon further assumptions. Although Frontline believes 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 the control of Frontline, Frontline cannot assure you that they will achieve or accomplish these expectations, beliefs or projections. The information set forth herein speaks only as of the date hereof, and Frontline disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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