For those of you who would like to take advantage of our Luck O' the Irish SALE but prefer not to make payments online, you are welcome to send us a check or money order in the amount of $114.12 for a 3-year AD-FREE Premium Service Bundle or $190.20 for a 5-year Bundle. Make checks or money orders payable in US funds to "Investor Village" and send to: Investor Village, P.O. Box 2958, Marrero, LA 70073.
As many of you know, we operate on the honor system around here. So, in closing out our Luck O' the Irish SALE, we wanted to advise those of you who plan to pay by check or money order that you can send a PM to Admin informing us of your intention. We will then upgrade your account for 7 days, allowing you to enjoy our ad-free premium service now and giving you a reasonable amount of time to get your payment in.
Re: SFL - Ship Finance International Limited Announces Offering of Convertible Senior Notes
I swear to ghod I've never seen a company loan shares to an underwriter so they can go short against notes or stock - I've never even heard of such a thing! We all know it happens all the time, but the buyers of the notes usually get the shares to short from retail or other 'tutes. I guess they're doing it this way so JF can collect the interest, or is he providing the shares interest free, or is interest rate to Jeffries low, but they make more money lending them out to other shorts?
Update on the notes - retiring 3.25% notes with ones yielding 5.75%, and if the 45 cent div holds (will it, given the "excess of $0.225" adjustments?), conversion price upon maturity is $13.20:
Hamilton, Bermuda, Sept. 30, 2016 (GLOBE NEWSWIRE) -- Ship Finance International Limited ("Ship Finance" or the "Company") (NYSE:SFL) today announced that it has increased the size of the public offering of its Convertible Senior Notes due 2021 (the "Notes") announced September 29, 2016 by $25 million, to a total of $225 million aggregate principal amount.
In addition, Ship Finance announced the pricing of its offering of $225 million aggregate principal amount of the Notes. The Notes will pay interest quarterly in arrears at a rate of 5.75% per annum and will mature on October 15, 2021, unless earlier repurchased, redeemed or converted. The Notes will be convertible, at any time prior to the close of business on the second scheduled trading day prior to the maturity date, into, cash, our common shares, or a combination of cash and our common shares, at the Company's election, as further described in the offering prospectus. The conversion rate for the Notes will initially be 56.2596 common of our common shares per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $17.77 per common share, and is subject to adjustment under the terms of the Notes. The conversion rate of the Notes will be adjusted for dividends in excess of $0.225 per quarter, subject to adjustment.
The Company intends to use the net proceeds received from the offering of the Notes for general corporate purposes, including working capital and the repurchase of all or a portion of its existing 3.25% convertible notes.
In connection with the Company's offering of the Notes, a subsidiary of the Company will enter into a share lending agreement with affiliates of Jefferies LLC, one of the underwriters of the Notes offering, (the "Share Borrower"), under which it will lend to the Share Borrower up to 8 million of the Company's common shares. None of the borrowed shares are newly-issued common shares. Instead, the shares are provided by way of a loan from one of Ship Finance's largest shareholders, which is an affiliate of the Company.
Here are the notes they're retiring - they didn't raise enough cash to pay these off, and what's with the conversion date already passing w/o shares being issued - did note holders buy off on waiting while SFL finalized the new note issuance? Also, initial conversion price for these was $21.82, current is $15.31, below current price of $14.80, which may have played a role in issuing new notes with the loaned shares kicker - if converted, note holders would have been underwater and unhappy: