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 March 2007
Commission File Number: 0-22704
Ship Finance International Limited
(Translation of registrant's name into English)
Par-la-Ville Place, 14 Par-la-Ville Road, Hamilton, HM 08, Bermuda
(Address of principal executive office)
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 99.1 is a copy of the press release of Ship Finance
International Limited (the "Company") dated March 20, 2007, announcing the
Company's acquisition of three new building seismic vessels including complete
seismic equipment.
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
Dated: March 21, 2007 By /s/ Lars Solbakken
------------------------------------
Name: Lars Solbakken
Title: Chief Executive Officer
Ship Finance Management AS
Exhibit 99.1
SFL - Acquisition of three newbuilding seismic vessels and 12 year charters to
SCAN Geophysical ASA
Press release from Ship Finance International Limited, March 20, 2007
Ship Finance International Limited (NYSE:SFL) ("Ship Finance" or the "Company"),
today announced that it has agreed to acquire three new building seismic vessels
from SCAN Geophysical ASA ("SCAN" or the "Charterer") based on a total delivered
price of $210 million, or $70 million per vessel, including complete seismic
equipment.
SCAN is a seismic data acquisition company, with a current fleet of three
seismic vessels in addition to the vessels Ship Finance has agreed to acquire.
SCAN is listed on the OTC-list in Norway with a market capitalization of
approximately $270 million, and the management team has extensive experience in
the offshore seismic market. A listing on the Oslo Stock Exchange is expected
during 2007.
The vessels are being constructed at the ABG Shipyard in India and delivery is
scheduled in January, April and July 2008. The vessels are purpose built,
specifically designed for efficient 3D seismic acquisition with high streamer
capacity with 10 tow points and streamer lengths of up to 10 km (for 8 streamer
configuration). SCAN plans to deploy the vessels in the high end 3D contract
seismic market to third party clients internationally within the oil and gas
industry. Currently, the market for modern 3D seismic vessels is very strong.
Ship Finance is financing the transaction by a senior loan facility of $120
million ($40 million per vessel) and an equity contribution of $30 million ($10
million per vessel). SCAN will provide a non-interest bearing seller's credit of
$60 million ($20 million per vessel).
Upon delivery from the shipyard, the vessels will commence 12 year bareboat
contracts to SCAN, and the charter rate per vessel payable to Ship Finance to
service the net investment of $50 million per vessel is agreed to be approx.:
Year 1-3: $26,500 per day
Year 4-6: $24,500 per day
Year 7-12: $10,000 per day
The seller's credit from SCAN will be fully amortized over the first 6 years
after delivery through a non-cash additional charter rate of $9,132 per day per
vessel.
The Charterer has been granted fixed price purchase options for each of the
vessels after 6, 10 and 12 years at approx. $20 million, $14 million and $9
million, respectively. The charter contracts are on bareboat basis and SCAN will
therefore be responsible for all operating and maintenance costs during the
charter period.
During the first 6 years of the charters, the annual repayment of debt for the
three vessels is approx. $13.7 million ($4.57 million per vessel), giving an
average annual net cash contribution after estimated interest expense and debt
repayment of approx. $0.12 per share.
Similar to all our recent acquisitions, the purchase of the vessels and
corresponding financing will be in separate subsidiaries, and Ship Finance's
guarantee obligation will be $16.3 million per vessel prior to delivery,
reducing to $10 million per vessel after delivery from the shipyard.
This transaction is another verification of the Company's strategy to diversify
both the asset base and customer portfolio. There is a high activity level in
the offshore related markets with significant cashflows and there is a positive
market outlook. We therefore anticipate further growth opportunities in this
segment.
Including newbuildings and adjusted for announced sales, the Company's fleet
will consist of 60 vessels, essentially all on medium to long term charters.
March 20, 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
SK 23153 0001 757863