Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Next Thread
Author: Hohum777 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3127  
Subject: SFL bond offering Date: 1/25/2013 9:28 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
SFL announced a bond offering of $250M. Then turned around, upsized the deal to $350M. Then,
my guess on "major shareholder" would be, Fredriksen trusts loaned out about $100M in shares
for a Deutsche Bank subsidiary to short the company.

http://finance.yahoo.com/news/sfl-ship-finance-international...


It sorta reads like major shareholder is selling shares, but they aren't. At least,
not at the present time. I wonder if DB is playing the short side because they know
the Q4 div was accelerated, and paid out early. Thus, a dividend bounce is less likely, and the
lack of dividend might surprise some investors. I'm guessing the proceeds from the
bond offering go to retire most of the debt on the existing bond repayment.
Print the post Back To Top
Author: wittgenstein Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2812 of 3127
Subject: Re: SFL bond offering Date: 1/28/2013 5:02 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
I'm guessing the proceeds from the
bond offering go to retire most of the debt on the existing bond repayment.


Almost certainly. We were buyers today.


jz

Print the post Back To Top
Author: Hohum777 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2813 of 3127
Subject: Re: SFL bond offering Date: 1/29/2013 12:51 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Almost certainly. We were buyers today.

jz


Good luck ... A little too early for me.

SFL is certainly in better shape than FRO wrt bond repayments. The bond upsizing is also
interesting- almost makes me think the company is looking at an asset addition. There's
been a fair amount of vessel ordering from late December - mid January, so who knows if JF
is also in a spending mood?

Print the post Back To Top
Author: wittgenstein Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2814 of 3127
Subject: Re: SFL bond offering Date: 1/29/2013 9:07 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
There's
been a fair amount of vessel ordering from late December - mid January, so who knows if JF
is also in a spending mood?


A good point! "Investing" in the boss's mood swings is really speculation isn't it?

jz

Print the post Back To Top
Author: Hohum777 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2815 of 3127
Subject: Re: SFL bond offering Date: 1/29/2013 9:46 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
A good point! "Investing" in the boss's mood swings is really speculation isn't it?

jz


Oh, he's in a good mood. But, he indicated the tanker consolidation entity would be
FRNT, added Gas carriers to the mix in July-Aug 2012, and it looks like Capes in Dec 2012.
So it begs the question- what type of vessels for SFL? Also, JF indicated the VLCC market is
struggling, and SFL have a handful of VLCCs reaching their 15th year anniversary over the
next 18 months. That means 3rd special survey, usually an expensive event. But, then
again, SFL would likely not have upsized unless there was some plan being hatched.

Print the post Back To Top
Author: brewer12345 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2818 of 3127
Subject: Re: SFL bond offering Date: 1/30/2013 6:50 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Guys, this is capital markets 101. SFL and JF are no dummies and they are astute observers of the capital markets. They know that the junk bond market has gotten stupid and so has the convertible market. Since they are very good at choosing their spots on when to raise funds as markets are behaving badly, they went out with a bond issue. The convert structure that includes a major holder loaning shares to short is common and all DB did was take the borrowed shares and short on behalf of the buyers of the bonds, who are generally hedge funds and other arbitrageurs. Since there is too much money chasing bonds these days, the slavering dogs who are buying put in so many excess orders over the $250MM asked for that the company chose to grab another $100MM very inexpensively while they are at it.

This stuff is done all day by the investment bankers, junk/convert issuers and the idiot buyers of such bonds. Makes it a little harder to really know what this means for the company in the immediate future. Could just be a refinancing while the markets are overly aggressive.

Print the post Back To Top
Author: wittgenstein Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2819 of 3127
Subject: Re: SFL bond offering Date: 1/30/2013 10:47 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
This stuff is done all day by the investment bankers, junk/convert issuers and the idiot buyers of such bonds. Makes it a little harder to really know what this means for the company in the immediate future. Could just be a refinancing while the markets are overly aggressive.


You're right.

Tor has decided this is the time and the market is happy to oblige.

That was the core idea behind SFL to begin with, and We're ok with being along for the ride. Precisely how to play the cards will get complicated, but not impossible by any means.


jz ( MP Maritime)

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Next Thread
Advertisement