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CET 24-01-2011 /Thomson Reuters /Source: Ship Finance International Limited /NOTC: SFL /ISIN: BMG810751062
SFL - Acquisition of jack-up drilling rig and seven-year bareboat charter
Press release from Ship Finance International Limited, January 24, 2010
Ship Finance International Limited (NYSE:SFL) ("Ship Finance" or the "Company"), today announced that it has entered into an agreement to acquire a modern jack-up drilling rig from Apexindo Offshore Pte. Ltd. ("Apexindo Offshore" or the "Charterer") in combination with a seven year bareboat charter back to the Charterer.
Apexindo Offshore is a Singapore-based subsidiary of P.T. Apexindo Pratama Duta Tbk. ("Apexindo"), which is Indonesia's largest independent drilling contractor.
The drilling rig Soehanah is a 375ft Baker Marine Jack-up built 2007 at PPL Shipyard in Singapore. The rig has been chartered to Total E&P Indonesie ("Total") since it was delivered from the shipyard, and the current charter runs until March 2012 with option for Total to extend until March 2013.
The agreed purchase price is approximately $151.5 million, including a $5 million seller's credit to be paid if Total extends the current sub-charter until 2013. The rig is expected to be delivered to Ship Finance in February 2011 and the bareboat charter rate will be approximately $72,500 per day initially, increasing to $75,000 per day if Total extends the charter to 2013.
At the end of the bareboat charter period, Apexindo will have a purchase option at $70 million plus an amount equal to 25% of the charter-free market value in excess of the option price. Ship Finance has received a commitment for up to $95 million senior secured bank financing, and the remaining amount will be funded from our available liquidity.
The new charter will add approximately $190 million to our extensive charter backlog, and the average net cash flow per year from this transaction is estimated to be in excess of $13 million or $0.16 per share after interest and debt amortization.
Ole B. Hjertaker, Chief Executive Officer in Ship Finance Management AS said in a comment: "We are very pleased to announce this transaction with Indonesia's largest independent drilling contractor. We increase our presence in the offshore industry and add yet another customer to our already diversified portfolio of long-term fixed charters. This accretive transaction is expected to have a positive impact on our dividend capacity going forward."
January 24, 2010
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Contact Persons:
Ole B. Hjertaker: Chief Executive Officer, Ship Finance Management AS
+47 23114011 / +47 90141243
Eirik Eide: Chief Financial Officer, Ship Finance Management AS
+47 23114006 / +47 95008921
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http://www.shipfinance.bm/
CET 24-01-2011 /Thomson Reuters /Source: Ship Finance International Limited /NOTC: SFL /ISIN: BMG810751062
SFL - Acquisition of jack-up drilling rig and seven-year bareboat charter
Press release from Ship Finance International Limited, January 24, 2010
Ship Finance International Limited (NYSE:SFL) ("Ship Finance" or the "Company"), today announced that it has entered into an agreement to acquire a modern jack-up drilling rig from Apexindo Offshore Pte. Ltd. ("Apexindo Offshore" or the "Charterer") in combination with a seven year bareboat charter back to the Charterer.
Apexindo Offshore is a Singapore-based subsidiary of P.T. Apexindo Pratama Duta Tbk. ("Apexindo"), which is Indonesia's largest independent drilling contractor.
The drilling rig Soehanah is a 375ft Baker Marine Jack-up built 2007 at PPL Shipyard in Singapore. The rig has been chartered to Total E&P Indonesie ("Total") since it was delivered from the shipyard, and the current charter runs until March 2012 with option for Total to extend until March 2013.
The agreed purchase price is approximately $151.5 million, including a $5 million seller's credit to be paid if Total extends the current sub-charter until 2013. The rig is expected to be delivered to Ship Finance in February 2011 and the bareboat charter rate will be approximately $72,500 per day initially, increasing to $75,000 per day if Total extends the charter to 2013.
At the end of the bareboat charter period, Apexindo will have a purchase option at $70 million plus an amount equal to 25% of the charter-free market value in excess of the option price. Ship Finance has received a commitment for up to $95 million senior secured bank financing, and the remaining amount will be funded from our available liquidity.
The new charter will add approximately $190 million to our extensive charter backlog, and the average net cash flow per year from this transaction is estimated to be in excess of $13 million or $0.16 per share after interest and debt amortization.
Ole B. Hjertaker, Chief Executive Officer in Ship Finance Management AS said in a comment: "We are very pleased to announce this transaction with Indonesia's largest independent drilling contractor. We increase our presence in the offshore industry and add yet another customer to our already diversified portfolio of long-term fixed charters. This accretive transaction is expected to have a positive impact on our dividend capacity going forward."
January 24, 2010
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Contact Persons:
Ole B. Hjertaker: Chief Executive Officer, Ship Finance Management AS
+47 23114011 / +47 90141243
Eirik Eide: Chief Financial Officer, Ship Finance Management AS
+47 23114006 / +47 95008921
-------------------------------------------
http://www.shipfinance.bm/
