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 January 12, 2007, announcing the
Company's $210 million dollar acquisition of a jack-up drilling rig and the
appointment of a new member to the Company's board of directors.
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 - $210 million acquisition of a jack-up drilling rig and appointment of new
Board Member
Press release from Ship Finance International Limited January 12, 2007
Ship Finance International Limited (NYSE: SFL) ("Ship Finance" or the
"Company"), today announced that it has entered into an agreement to acquire a
newbuilding jack-up drilling rig currently under construction, the West Prospero
(Seadrill 4), from a subsidiary of Seadrill Limited ("Seadrill").
The purchase price for the drilling rig is agreed to $210 million and expected
delivery from Keppel Fels in Singapore will be in July 2007. The Company is
currently in discussions with banks for the financing of the rig, and based on
discussions to date, we expect to enter into a term loan facility in an amount
of approximately $170 million.
The rig will be chartered back to the seller for 15 years on a bareboat basis,
guaranteed by Seadrill. Seadrill is among the world's leading offshore drilling
contractors, with a market capitalization of approximately $6 billion. The
aggregate charter payments for the first three years will be approximately $120
million, the following four years will be approximately $77 million, and the
last eight years will be approximately $109 million.
Seadrill has been awarded a letter of intent by ExxonMobil Exploration and
Production Malaysia Inc. for the West Prospero, and the intended contract has a
duration of 400 days, with an estimated value of approximately $82 million.
Start-up of operations is planned in the third quarter of 2007, following
delivery from the construction yard.
In addition to the fixed charter rate, Ship Finance will receive a profit split
element of 4% above certain threshold levels, starting January 1, 2009. During
the charter period the charterer will have several options to buy back the rig,
and the first purchase option will be after 3 years at $142 million and the last
purchase option after 15 years at $60 million.
Ship Finance also announces the appointment of Svein Aaser to the Board of
Directors. Mr. Aaser is the former President and Chief Executive Officer of DnB
NOR ASA, the largest financial institution in Norway, and a leading maritime
financier worldwide. During his carreer in DnB NOR, the market capitalization of
the company increased from approximately $2.2 billion to approximately $19.1
billion. Prior to his position in DnB NOR, Mr Aaser had a long carreer as a top
executive in several copmpanies, including Nycomed Amersham plc., Storebrand
Skade AS and Stabburet AS. Mr Aaser serves on several boards, including Pan Fish
ASA and Laerdal Medical AS.
Tor Olav Tr0im, Chairman in Ship Finance, said in a comment: "We are very
pleased to have recruited Mr. Aaser to become a non-executive board member. His
broad international background in large multinational companies, substantial
banking experience and his outstanding track record in the capital market
secures our Company a very competent and professional board member. Furthermore,
the announced investment in the oil exploration sector validate the Board of
Director's strategy to diversify the asset base and grow the long-term charter
business. Over the last 12 months, the Company has announced investments of $950
million, of which more than $760 million outside the tanker segment. We believe
there will be particularly good growth opportunities within oil exploration and
related segments, as we see a high activity level and significant cashflows, and
there is a positive market outlook."
January 12, 2007
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Contact Person:
Lars Solbakken: Chief Executive Officer, Ship Finance Management AS
+47 2311 4006
Ole B. Hjertaker: Chief Financial Officer, Ship Finance Management AS
+47 2311 4011 / +47 9014 1243
SK 23153 0001 757822