d828104_6-k.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES
EXCHANGE ACT OF 1934
For
the month of November 2007
Commission
File Number: 0-22704
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Ship
Finance International Limited
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(Translation
of registrant’s name into English)
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Par-la-Ville
Place, 14 Par-la-Ville Road, Hamilton, HM 08, Bermuda
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(Address
of principal executive office)
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Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F [X] Form 40-F
[ ]
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): ___
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)7: ___
Indicate
by check mark whether the registrant by furnishing the information contained
in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes
[_] No [X]
If
“Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
82-______________.
INFORMATION
CONTAINED IN THIS FORM 6-K REPORT
Attached
as Exhibit 1 is a copy of the press release of Ship Finance International
Limited (the “Company”) dated November 7, 2007, announcing the Company’s
acquisition of two offshore supply vessels from Deep Sea Supply Plc. and its
entry into two 12 year bareboat charters.
Exhibit
1
SFL
– Acquisition of two offshore supply vessels and 12 year charters to Deep Sea
Supply Plc.
Press
release from Ship Finance International Limited, November 7,
2007
Ship
Finance International Limited (NYSE:SFL) (“Ship Finance” or the “Company”),
today announced that it has agreed to acquire two additional offshore supply
vessels from Deep Sea Supply Plc. (“Deep Sea” or the “Charterer”) based on a
total delivered price of $126.0 million.
The
sale and leaseback transaction involves two 15,000 BHP anchor handling
tug/supply vessels (AHTS), Sea Leopard and Sea Bear, built in
Norway in 1998 and 1999, respectively.
Deep
Sea is publicly listed on the Oslo Stock Exchange (OSE:DESSC), with a market
capitalization of approximately $600 million. The current fleet includes 15
offshore supply vessels, in addition to an orderbook of 16 vessels to be
delivered from 2007 to 2009.
Deep
Sea will provide a non-interest bearing seller’s credit of $22.0 million, giving
a net investment by Ship Finance of $104.0 million. This is planned financed
with a senior loan facility of approximately $77.0 million and an equity
contribution of approximately $27.0 million. The equity portion will be funded
from the Company’s existing cash reserves.
Expected
delivery will be in November/December 2007 and the charter rate per day to
Ship
Finance to service the net investment of $104.0 million is agreed as
follows:
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Years
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Per
vessel
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Total
per day
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1-2
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$20,750
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$41,500
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3-5
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$18,750
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$37,500
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6-7
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$16,750
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$33,500
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8-12
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$13,750
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$27,500
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The
charter contracts are on bareboat basis and Deep Sea will therefore be
responsible for all operating and maintenance costs during the charter period.
The seller’s credit from Deep Sea will be fully amortized over the charter
period through a non-cash additional charter rate.
The
Charterer has been granted fixed price purchase options (net of seller’s credit)
for each of the vessels of $42.0 million, $34.8 million, $27.9 million, $18.7
million and $10.85 million after 3, 5, 7, 10 and 12 years,
respectively.
Based
on the expected financing terms, the aggregate annual repayment of debt for
the
vessels will be approximately $6.4 million during the first seven years of
the
charters, giving an average annual net cash contribution after estimated
interest expense and debt repayment of approximately $4.1 million, or $0.06
per
share.
This
is the second transaction the Company has entered into with Deep Sea in 2007.
The first transaction, involving 2 AHTS and 3 platform supply vessels (PSVs),
was successfully concluded in September/October. As part of the new agreement,
the Company has agreed that one of the vessels in the first transaction may
potentially be re-purchased by Deep Sea prior to the first agreed purchase
option date.
After
the completion of the transaction, the Company’s operating fleet will consist of
61 vessels, essentially all on medium to long term charters. In addition, Ship
Finance has 12 vessels on order.
November
7, 2007
The
Board of Directors
Ship
Finance International Limited
Hamilton,
Bermuda
Contact
Persons:
Lars
Solbakken: Chief Executive Officer, Ship Finance Management AS
+47
2311 4006 / +47 9119 8844
Ole
B. Hjertaker: Chief Financial Officer, Ship Finance Management AS
+47
2311 4011 / +47 9014 1243
About
Ship Finance
Ship
Finance is a major shipowning company listed on the New York Stock Exchange
(NYSE: SFL). Including newbuildings and announced acquisitions, Ship Finance
has
a fleet consisting of 73 vessels, including 37 crude oil tankers (VLCC and
Suezmax), 8 oil/bulk/ore vessels, 13 container vessels, 3 dry bulk carriers,
2
jack-up drilling rigs and 7 offshore supply vessels and 3 seismic vessels.
The
fleet is one of the largest in the world with a total cargo capacity of more
than 11 million dwt. and most of the vessels are employed on medium or long
term
charters.
More
information can be found on the Company’s website:
www.shipfinance.org
Cautionary
Statement Regarding Forward Looking Statements
This
press release may contain forward looking statements. These statements are
based
upon various assumptions, many of which are based, in turn, upon further
assumptions, including Ship Finance management's examination of historical
operating trends. Although Ship Finance believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and
are beyond its control, Ship Finance cannot give assurance that it will achieve
or accomplish these expectations, beliefs or intentions.
Important
factors that, in the Company's view, could cause actual results to differ
materially from those discussed in this presentation include the strength of
world economies and currencies, general market conditions including fluctuations
in charter hire rates and vessel values, changes in demand in the tanker market
as a result of changes in OPEC's petroleum production levels and world wide
oil
consumption and storage, changes in the Company's operating expenses including
bunker prices, dry-docking and insurance costs, changes in governmental rules
and regulations or actions taken by regulatory authorities, potential liability
from pending or future litigation, general domestic and international political
conditions, potential disruption of shipping routes due to accidents or
political events, and other important factors described from time to time in
the
reports filed by the Company with the United States Securities and Exchange
Commission.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorised.
Ship
Finance International Limited
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Dated: November
13, 2007
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By:
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/s/ Lars
Solbakken
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Name:
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Lars
Solbakken
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Title:
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Chief
Executive Officer
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Ship
Finance Management AS
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SK
02153 0001
828104