Frontline Ltd. (the âCompanyâ or âFrontlineâ) today announced that it has signed
a sale-and-leaseback agreement in an amount up to $544 million (the âLease
Financingâ) with ICBC Financial Leasing Co., Ltd. (âICBCLâ).
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The Lease Financing has a tenor of seven years, carries a rate of LIBOR plus a
margin of 230 bps, has an amortization profile of 17.8 years and includes
purchase options for Frontline throughout the term with a purchase obligation at
the end of the term.
The proceeds of the Lease Financing will be used to finance the cash amount
payable upon closing of the acquisition of 10 Suezmax tankers built in 2019
under the sale and purchase agreement with a wholly-owned subsidiary of
Trafigura Pte Ltd. targeted to take place March 16, 2020.
Inger M. Klemp, Chief Financial Officer of Frontline Management AS, commented:
âWe are very pleased to have signed the Lease Financing with ICBCL, which marks
an important transaction between ICBCL and Frontline. This transaction extends
our capital sources at a very attractive capital cost, maintains our industry
leading cash breakeven rates and maximizes potential cash flow per share after
debt service.â
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
March 6, 2020
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 âbelieve,â âanticipate,â âintends,â
âestimate,â âforecast,â âproject,â âplan,â âpotential,â âmay,â âshould,â
âexpect,â âpendingâ 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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