DHT Holdings, Inc. announces notice of redemption all of its outstanding 4.5% Convertible Senior Notes due 2021

Rhea-AI Summary

DHT Holdings, Inc. (NYSE: DHT) announced its intention to redeem all outstanding 4.5% Convertible Senior Notes due 2021 on August 21, 2020. This redemption will occur at 100% of the principal amount plus accrued interest. Holders may convert their notes into common stock at a rate of 187.0208 shares per $1,000 principal until August 20, 2020. Detailed terms are provided in the notice sent to note holders. The company emphasizes this announcement is not an offer to buy or sell securities.

Positive

• The redemption of the 4.5% Convertible Senior Notes may strengthen the balance sheet by eliminating debt.
• The ability for investors to convert notes into common stock could enhance liquidity and shareholder engagement.

Negative

• Redeeming the notes may reduce cash reserves, potentially impacting liquidity.
• If many noteholders convert to common stock, existing shareholders could face dilution.

HAMILTON, BERMUDA, July 17, 2020 – DHT Holdings, Inc. (NYSE:DHT) (the “Company”) announces that it has sent notice of its intention to redeem all of the Company’s outstanding 4.5% Convertible Senior Notes due 2021 (CUSIP No. 23335SAD8) (the “Securities”), on August 21, 2020 (the “Redemption Date”), at a price equal to (a) 100% of the principal amount of Securities being redeemed plus (b) accrued and unpaid interest, if any, to, but excluding, the Redemption Date.  The Securities may be converted into shares of common stock of the Company at any time before the close of business on August 20, 2020, upon satisfaction of the requirements therefor set forth in the Indenture.  The Conversion Rate for the Securities is 187.0208 shares of common stock per $1,000 principal amount of Securities.

The details concerning the terms and conditions of the redemption are fully described in the notice of redemption sent to holders of the Securities. This press release is not a notice of redemption.  The redemption will be made solely pursuant to the notice of redemption.

This press release does not constitute an offer to buy or sell or the solicitation of an offer to sell or buy securities.

About DHT Holdings, Inc.

DHT is an independent crude oil tanker company. Our fleet trades internationally and consists of crude oil tankers in the VLCC segment. We operate through our integrated management companies in Monaco, Singapore and Oslo, Norway. You shall recognize us by our business approach with an experienced organization with focus on first rate operations and customer service, quality ships built at quality shipyards, prudent capital structure  to accommodate staying power through the business cycles, a combination of market exposure and fixed income contracts for our fleet, a counter cyclical philosophy with respect to investments, employment of our fleet and capital allocation and a transparent corporate structure maintaining a high level of integrity and good governance.  For further information: www.dhtankers.com.

Forward Looking Statements

This press release contains certain forward-looking statements and information relating to the Company that are based on beliefs of the Company’s management as well as assumptions, expectations, projections, intentions and beliefs about future events.  When used in this document, words such as “believe,” “intend,” “anticipate,” “estimate,” “project,” “forecast,” “plan,” “potential,” “will,” “may,” “should” and “expect” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  These statements reflect DHT’s current views with respect to future events and are based on assumptions and subject to risks and uncertainties.  Given these uncertainties, you should not place undue reliance on these forward-looking statements.  These statements reflect the Company’s current views with respect to future events and are based on assumptions and subject to risks and uncertainties.  Given these uncertainties, you should not place undue reliance on these forward-looking statements.  These forward-looking statements represent the Company’s estimates and assumptions only as of the date of this press release and are not intended to give any assurance as to future results.  For a detailed discussion of the risk factors that might cause future results to differ, please refer to the Company’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission on March 25, 2020.

The Company undertakes no obligation to publicly update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, except as required by law.  In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and the Company’s actual results could differ materially from those anticipated in these forward-looking statements.

CONTACT:
Laila C. Halvorsen, CFO
Phone: +1 441 295 1422 and +47 984 39 935
E-mail: lch@dhtankers.com

Wilhelm Flinder, Manager – Investor Relations & Business Analysis
Phone: +1 441 295 1422 and +47 936 11 350
E-mail: wf@dhtankers.com

FAQ

What is the redemption date for DHT's Convertible Senior Notes?

DHT's Convertible Senior Notes are set to be redeemed on August 21, 2020.

What is the price at which DHT will redeem its Convertible Senior Notes?

DHT will redeem the notes at 100% of the principal amount plus accrued interest.

What is the conversion rate for DHT's Convertible Senior Notes?

The conversion rate is 187.0208 shares of common stock per $1,000 principal amount of the notes.

Can holders convert their notes into common stock?

Yes, holders may convert their notes into common stock until August 20, 2020.