SFL - Announcement of Pricing of Public Offering of 8 million Common Shares

Rhea-AI Summary

SFL (NYSE: SFL) has priced its public offering of 8,000,000 common shares at $12.50 per share. The net proceeds will be used for general corporate purposes, including potential vessel acquisitions. The company has granted underwriters a 30-day option to purchase up to an additional 1,200,000 shares. Morgan Stanley is acting as the sole bookrunning manager, with BTIG, as lead manager. The offering is being made through a prospectus supplement and accompanying base prospectus, with a registration statement filed and effective with the SEC.

Positive

• Successful pricing of public offering at $12.50 per share
• Potential to raise additional capital through 1,200,000 share option
• Funds to be used for vessel acquisitions, potentially expanding fleet

Negative

• Potential dilution of existing shareholders' equity
• Increased share count may impact earnings per share

Insights

Financial Analyst

The recent announcement by SFL Corporation Ltd. regarding the pricing of its public offering of 8 million common shares at $12.50 per share is significant for several reasons. Firstly, this move suggests that SFL is looking to raise substantial capital, which could be utilized for various corporate purposes, including potential vessel acquisitions. For a company in the shipping industry, capital raising can be a critical strategy for expanding its fleet and enhancing its operational capabilities. However, the issuance of new shares could also lead to dilution of existing shareholders' equity, which might be a concern for some investors. The involvement of prominent underwriters like Morgan Stanley and BTIG, LLC indicates strong institutional interest and confidence in SFL's prospects.

Market Research Analyst

This public offering could have several implications for SFL's stock performance in both the short and long term. In the short term, the announcement might put downward pressure on the stock price due to the dilution effect. However, if the raised capital is effectively deployed towards strategic acquisitions or other growth initiatives, it could lead to long-term value creation for shareholders. Additionally, the pricing of the shares at $12.50 each provides a benchmark for the market valuation of SFL and the successful completion of this offering could enhance the company's liquidity position. Investors should monitor how SFL utilizes the proceeds from this offering and whether it leads to tangible improvements in their operational metrics and financial performance.

Shipping Industry Expert

From an industry perspective, SFL's move to price and execute a public offering is noteworthy. The shipping industry is capital-intensive and raising funds through equity can provide the necessary resources for fleet expansion and modernization. The mention of potential vessel acquisitions is particularly important, as new or upgraded vessels can significantly enhance a shipping company's competitive edge. Furthermore, the backing of major financial institutions as underwriters lends credibility to the offering and suggests a positive outlook for the industry as a whole. However, the shipping market is also subject to cyclical fluctuations and the timing of investments will be crucial. Stakeholders should assess whether SFL's strategic actions align with favorable market conditions and projected demand in the shipping sector.

SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) today announced that it has priced its previously announced underwritten public offering (the “Offering”) of 8,000,000 of the Company’s common shares, par value $0.01 per share (“Common Shares”), at $12.50 per share.

The net proceeds of the Offering are expected to be used for general corporate purposes, including but not limited to vessel acquisitions.

The Company has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 Common Shares.

Morgan Stanley is acting as sole bookrunning manager and BTIG, LLC is acting as lead manager for the Offering. Arctic Securities, DNB Markets, Fearnley's Securities and Pareto Securities are also acting as co-managers for the Offering.

The Offering is being made only by means of a prospectus supplement and accompanying base prospectus. A registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission (the “SEC”) and is effective. A final prospectus supplement related to the Offering will be filed with the SEC. You may obtain these documents for free, once available, by visiting EDGAR on the SEC website at sec.gov. Alternatively, a copy may be obtained from Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

July 23, 2024

The Board of Directors
SFL Corporation Ltd.
Hamilton, Bermuda

Investor and Analyst Contacts:
Aksel Olesen, Chief Financial Officer, SFL Management AS
+47 23 11 40 36
André Reppen, Chief Treasurer & Senior Vice President, SFL Management AS
+47 23 11 40 55
Sander Borgli, Vice President - IR, SFL Management AS
+47 23 11 40 73

Media Contact:
Ole B. Hjertaker, Chief Executive Officer, SFL Management AS
+47 90 14 12 43

About SFL

SFL has a unique track record in the maritime industry and has paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004. The Company’s fleet of vessels is comprised of tanker vessels, bulkers, container vessels, car carriers and offshore drilling rigs. SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company's website: www.sflcorp.com

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 SFL management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL 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, SFL 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 the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions in the seaborne transportation industry, which is cyclical and volatile, including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which the Company operates, including shifts in consumer demand from oil towards other energy sources or changes to trade patterns for refined oil products, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, technological innovation in the sectors in which we operate and quality and efficiency requirements from customers, increased inspection procedures and more restrictive import and export controls, changes in the Company’s operating expenses, including bunker prices, dry-docking and insurance costs, performance of the Company’s charterers and other counterparties with whom the Company deals, the impact of any restructuring of the counterparties with whom the Company deals, and timely delivery of vessels under construction within the contracted price, governmental laws and regulations, including environmental regulations, that add to our costs or the costs of our customers, potential liability from pending or future litigation, potential disruption of shipping routes due to accidents, political instability, terrorist attacks, piracy or international hostilities, the length and severity of the ongoing coronavirus outbreak and governmental responses thereto and the impact on the demand for commercial seaborne transportation and the condition of the financial markets, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission. SFL disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

FAQ

How many shares is SFL (NYSE: SFL) offering in its public offering?

SFL is offering 8,000,000 common shares in its public offering, with an additional 30-day option for underwriters to purchase up to 1,200,000 more shares.

What is the price per share for SFL 's (NYSE: SFL) public offering?

The price per share for SFL 's public offering is $12.50.

How does SFL (NYSE: SFL) plan to use the proceeds from its public offering?

SFL plans to use the net proceeds from the offering for general corporate purposes, including but not to vessel acquisitions.

Who is the bookrunning manager for SFL 's (NYSE: SFL) public offering?

Morgan Stanley is acting as the sole bookrunning manager for SFL 's public offering.