SFL - Successful Placement of Five Year Senior Unsecured Bonds

Rhea-AI Summary

SFL (NYSE: SFL) has successfully placed NOK 750 million senior unsecured bonds due September 25, 2029. The bonds will pay a quarterly coupon of the 3-month NIBOR + 3.25% per annum. Net proceeds will be used to call the outstanding amount of the company's existing NOK 600 million senior unsecured bonds maturing in January 2025 and for general corporate purposes.

Arctic Securities, DNB Markets, and SEB acted as Joint Bookrunners, while Fearnley Securities and Pareto Securities were co-managers. SFL has notified Nordic Trustee AS of its intention to exercise the call option to redeem all outstanding Existing Bonds.

Positive

• Successful placement of NOK 750 million senior unsecured bonds
• Extended debt maturity to September 2029
• Refinancing of existing NOK 600 million bonds maturing in January 2025

Negative

• None.

Insights

Financial Analyst

SFL's successful placement of NOK 750 million in senior unsecured bonds demonstrates strong investor confidence and improves the company's debt profile. The new bonds, due in 2029, offer a quarterly coupon of 3-month NIBOR + 3.25%, which is competitive in the current market environment. This move allows SFL to refinance its existing NOK 600 million bonds maturing in 2025, potentially reducing interest expenses and extending debt maturity.

The oversubscription of the bond issuance suggests robust demand for SFL's debt, reflecting positively on the company's creditworthiness. This successful refinancing enhances SFL's financial flexibility, providing additional liquidity for general corporate purposes. However, investors should monitor the impact on the company's overall leverage and interest coverage ratios.

Maritime Industry Expert

SFL's bond placement is a strategic move in the shipping industry, where capital management is crucial. By securing long-term financing at a reasonable rate, SFL strengthens its position to navigate the cyclical nature of the shipping market. The 3.25% spread over NIBOR is competitive, indicating market confidence in SFL's business model and asset portfolio.

This refinancing provides SFL with enhanced financial stability to pursue growth opportunities or weather potential market downturns. It's particularly noteworthy given the current challenges in the shipping sector, including environmental regulations and geopolitical tensions. The successful bond placement suggests that investors view SFL's diversified fleet and long-term charter strategy favorably, positioning the company well against industry peers.

SFL Corporation Ltd. (NYSE: SFL) (the "Company" or "SFL") today successfully placed NOK 750 million senior unsecured bonds due September 25, 2029. The bonds will pay a quarterly coupon of the 3 month Norwegian Interbank Offered Rate (NIBOR) + 3.25 % per annum.

Net proceeds from the bond issuance will intendedly be applied against the call of the net outstanding amount of the Company’s existing NOK 600 million senior unsecured bonds maturing in January 2025, with ISIN NO0010872997 (the "Existing Bonds"), at the prevailing call price, and general corporate purposes.

Arctic Securities, DNB Markets and SEB acted as Joint Bookrunners in the placement of the bond offering. Fearnley Securities and Pareto Securities acted as co-managers.

SFL further announces that it has notified Nordic Trustee AS that it is exercising the call option to redeem all outstanding Existing Bonds.

Reference is made to the attached notice from Nordic Trustee AS for further information about the exercised call option.

September 11, 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
Marius Furuly, Senior Vice President - Energy, SFL Management AS
+47 23 11 40 16

Media Contact:
Ole B. Hjertaker, Chief Executive Officer, SFL Management AS +47 23 11 40 11

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.

Attachment

• NO0010872997_IB_20240911

FAQ

What is the size of SFL 's new bond placement?

SFL (NYSE: SFL) successfully placed NOK 750 million senior unsecured bonds due September 25, 2029.

What is the interest rate for SFL's new bonds?

The new bonds will pay a quarterly coupon of the 3-month Norwegian Interbank Offered Rate (NIBOR) + 3.25% per annum.

How will SFL use the proceeds from the new bond issuance?

SFL intends to use the net proceeds to call the outstanding amount of its existing NOK 600 million senior unsecured bonds maturing in January 2025 and for general corporate purposes.

Who were the bookrunners for SFL's bond placement?

Arctic Securities, DNB Markets, and SEB acted as Joint Bookrunners for SFL's bond placement, with Fearnley Securities and Pareto Securities as co-managers.