GlobeNewswire

FRO - Frontline to acquire a fleet of Suezmax tankers from Trafigura

Share

Frontline Ltd. ("Frontline") (NYSE and OSE: FRO), today announced that it has entered into a sale and purchase agreement with Trafigura Maritime Logistics (“TML”), a wholly-owned subsidiary of Trafigura Pte Ltd (“Trafigura”) and certain related entities to acquire ten Suezmax tankers built in 2019 through the acquisition of a TML special purpose vehicle which holds the vessels (the “Acquisition”). As part of the Acquisition, Frontline has options to acquire an additional four Suezmax tankers built in 2019 through the acquisition of a second TML special purpose vehicle.

Acquisition Overview

  • Frontline to acquire ten Korean 2019-built Suezmax tankers all fitted with exhaust gas cleaning systems
  • Transaction consideration to consist of (i) 16,035,856 ordinary shares of Frontline at an agreed price of USD 8.00 per share issuable upon signing; and (ii) a cash amount ranging from USD 538 to 547 million, payable upon the closing of the Acquisition
  • Closing of the Acquisition is targeted as soon as practically possible with November 15, 2019 being the earliest and March 15, 2020 being the latest expected date
  • To obtain earlier exposure to the vessels, Frontline has agreed to time charter all the ten vessels from Trafigura until closing of the Acquisition at a daily rate of approximately USD 23,000
  • Frontline has also agreed to charter five of these vessels back to Trafigura on three-year time charters at a daily base rate of USD 28,400 with a 50% profit share above the base rate
  • Frontline is in discussions with leading lending banks who have indicated an interest in providing financing for the Acquisition. An affiliate of Hemen Holding Ltd., Frontline’s largest shareholder, has offered a USD 547 million commitment at closing of the Acquisition through a three year facility at terms viewed as attractive  
  • Following the closing of the Acquisition, Trafigura will own approximately 8.48% of the ordinary shares of Frontline, and Frontline will have a total of 189,153,166 outstanding shares par value USD 1.00 each
  • Frontline has two separate options to acquire two plus two additional Suezmax tankers that expire on September 12, 2019 and September 24, 2019. The second option will expire if the first option is not validly exercised. The transaction structure for the four optional vessels will be similar to that of the ten firm vessels. The number of ordinary shares to be issued if one or both of the options are exercised will be based on the volume weighted average trading price of Frontline’s ordinary shares on the NYSE over the 20 days prior to the option exercise date. All four option vessels are 2019 Chinese built and fitted with exhaust gas cleaning systems

Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS commented:

“This transaction is backed by our strong belief in tanker market fundamentals and reflects our ability to act swiftly and decisively with the support of our largest shareholder. We welcome Trafigura as a strategic shareholder and believe the Acquisition reflects the value Trafigura ascribes to our equity. In addition to Trafigura being a longstanding customer of Frontline, we now have a unique partnership that we believe will lead to further synergies going forward. The structure of the transaction creates an immediate impact to our earnings at a time when we expect freight rates to increase significantly. Moreover, we expect the Acquisition to boost our dividend capacity going forward.”

Rasmus Bach Nielsen, Global Head of Wet Freight at Trafigura, commented:

“This marks the continuation of an approach that has long been integral to Trafigura’s strategy, namely, investing in infrastructure assets in support of commodity flows and collaborating with a market leader like Frontline to maintain sufficient access to those assets for our trading business.  Trafigura trades around 5.5 million barrels per day of oil and petroleum products around the world and has a market-leading position in strategic commodity flows, notably as a leading exporter of crude oil from the U.S. The significant increase in U.S export volumes, an aging global fleet, particularly of crude vessels, and a historically low orderbook all support our constructive outlook for the sector. We therefore see significant upside potential in our equity investment in Frontline, a company with vast commercial scale and capabilities with whom we already enjoy a close working relationship.”
Following the acquisition of the 10 Suezmax tankers from Trafigura, Frontline’s fleet will consist of 75 vessels, including newbuildings, with an aggregate carrying capacity of 14.2 million DWT and an average age of 3.7 years

DNB Markets has acted as mandated advisor between the parties in the transaction.

August 23, 2019
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda

Frontline Contact:
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

Trafigura Contact:
Trafigura’s Global Press Office: +41 22 592 45 28 or media@trafigura.com

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.

About GlobeNewswire

GlobeNewswire
GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://globenewswire.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

Auriant Mining:s delårsrapport för Q1 2020 och online-konferens den 29 maj 202025.5.2020 12:05:44 CESTPressemelding

Auriant Mining AB har nöjet att meddela att Bolagets delårsrapport för Q1 2020 kommer att publiceras på fredagen den 29 maj. Detta kommer att följas av en interaktiv webcast för analytiker och investerare med vd Sergey Ustimenko som kommer att presentera Auriant Mining:s resultat för Q1 2020 samt med en möjlighet att ställa frågor. Evenemanget börjar kl. 13:00 CET (13:00 Stockholm, 14:00 Moskva, 12:00 London). De som vill få en e-postpåminnelse en timme innan evenemanget kan registrera sig genom länken eller öppna följande länk direkt för att delta i online-konferensen fredagen den 29 maj: Link to register on Q1 2020 Interim Report Online Conference För mer information, vänligen kontakta: Sergey Ustimenko, VD Tel: +7 495 109 02 82 E-post: sergey.ustimenko@auriant.com Företagsnamn: Auriant Mining AB Kortnamn: AUR ISIN-kod: SE0001337213 Website: www.auriant.com www.facebook.com/AuriantMining/ Auriant Mining AB (AUR) är ett svenskt gruvbolag med inriktning på prospektering och guldprodukt

Auriant Mining Q1 2020 Interim Report and Online Conference, May 29th 202025.5.2020 12:05:44 CESTPress release

Auriant Mining AB is pleased to announce that the Company’s Q1 2020 interim report will be published on Friday, May 29th. This will be followed by an interactive webcast for analysts and investors with the CEO, Sergey Ustimenko who will be presenting Auriant Mining’s Q1 2020 results as well as hosting a Q&A session. The event will begin at 13:00 CET (13:00 Stockholm, 14:00 Moscow, 12:00 London). Those who wish to receive an email reminder an hour before the event can pre-register using the link or open the link directly to participate in Online Conference on Friday, May 29th: Link to register on Q1 2020 Interim Report Online Conference For more information, please contact: Sergey Ustimenko, CEO Tel: +7 495 109 02 82 E-mail: sergey.ustimenko@auriant.com Company name: Auriant Mining AB Short name: AUR ISIN-code: SE0001337213 Website: www.auriant.com www.facebook.com/AuriantMining/ Auriant Mining AB (AUR) is a Swedish junior mining company focused on gold exploration and production in Rus

Ress Life Investments AS Half-Year Report – 1 October 2019 – 31 March 202025.5.2020 11:21:09 CESTPress release

Corporate Announcement no. 20/2020: Half-Year Report 1 October 2019 – 31 March 2020 Copenhagen, 25 May 2020 The Board of Directors and Management have today discussed and approved the Half-Year Report of Ress Life Investments A/S for the period 1 October 2019 – 31 March 2020: Ress Life Investments A/S realised a net profit before and after tax of USD 3,638,925 for the period 1 October 2019 – 31 March 2020. The net profit for the period corresponds to a net return on equity of 1.99%, earnings per share at 40.60 and an increase in net asset value of USD 42.01 per share.The increase in profit before tax mainly relates to positive fair value adjustments offset by administrative expenses and staff costs.The fair value of the Company’s investment assets increased from USD 118,791,752 at 30 September 2019 to USD 159,631,723 at 31 March 2020.Equity stands at USD 182,699,386 as of 31 March 2020, corresponding to a net asset value of USD 1,960 per share compared with a net asset value of USD 1,9

Prosafe SE: Notice of Change to financial calendar25.5.2020 10:54:58 CESTPress release

Due to a change in the timing of the Board meeting, the Q1 2020 results will be published on 26 May 2020 at about 01.30 p.m. CEST, which is one day earlier than originally announced. The Q1 2020 report and the Q1 2020 presentation will be published on www.newsweb.no and on Prosafe’s website www.prosafe.com Jesper Kragh Andresen, CEO and Stig H. Christiansen, Deputy CEO & CFO will on 27 May 2020 at 10:00 a.m. CEST host an audio webcast. The webcast can be followed at www.prosafe.com It will be possible to ask questions during the presentation by using the Q&A tool embedded in the audio webcast. A replay of the audio webcast will be made available at www.prosafe.com shortly after. Prosafe is a leading owner and operator of semi-submersible accommodation vessels. The company is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com Stavanger, 25 May 2020 Prosafe SE For further information, please contact: Jesper K. Andresen, CEO Phone

SEK CREDIT OPERATION ANNOUNCEMENT 2020-05-2525.5.2020 10:30:00 CESTPress release

SEK CREDIT OPERATION ANNOUNCEMENT 2020-05-25 Transaction type:SEK CreditTender date:2020-05-25Time for submission of bids:11.00-11.30 (CEST)Payment date:2020-05-25 (at 3 pm)Maturity date:2020-08-25Duration:92 daysOffered volume:UnlimitedLowest accepted bid volumeSEK 50 millionMaximum number of bids from each participant: 1RateRepo rate + 0,20 percentage points All monetary counterparties are invited to submit volume bids to the Riksbank, tel + 46 8 6966970 by 11.30 am on May 25, 2020. Confirmation of bids to e-mail: eol@riksbank.se Result of the auction will be published at 11.45 (CEST) Complete terms and conditions can be retrieved at http://www.riksbank.se