SFL - Ship Finance and Consafe Offshore in MUSD 185 Rig Financing Transaction
Press release from Ship Finance International Limited - 09.01.2006
Consafe Offshore AB (publ) ("Consafe" listed on Oslo Stock Exchange - ticker CONSA) and Ship Finance International Limited ("SFL" listed on NYSE - ticker SFL) have today entered into a heads of agreement in which Consafe sells the accommodation rig "Safe Concordia" via a limited liability company, for a sum of USD 185 million.
The rig is chartered back to Consafe for 30 years. In addition there is a profit split calculated after operating expenses, overhead expenses and tax, on an annual basis.
Consafe has a right to buy back the rig anytime after 10 years until the end of the contract.
The change of ownership is anticipated to take place soon after the rig finishes upgrading currently being undertaken, assumed during the first quarter 2006. This transaction does not encompass any of the three other rigs owned by Consafe.
Consafe's Chairman J Christer Ericsson states "This deal is an important part of Consafe's refinancing program that gives the Company an increased financial flexibility which will enable Consafe to expand its fleet faster and thereby increase its operational gearing more than would otherwise be possible".
Ship Finance's Chairman Tor Olav Trøim states "We are very happy to prove the concept of Ship Finance as a player positioned in between the commercial bank market and the regular equity market. By this transaction we can demonstrate that Ship Finance's structure also works in the offshore sector in addition to the marine sector".