John Fredriksen-backed SFL Corp says it is planning to sell a stack of new shares in a deal that could raise nearly $120m in gross proceeds.
The New York and Oslo-listed ship lessor said the new cash could be used for acquisitions, although its options are not limited to vessel buys.
“We continuously evaluate potential transactions that we believe will be accretive to earnings, enhance shareholder value or are in the best interests of the company, which may include the pursuit of other business combinations, the acquisition of vessels or related businesses, the expansion of our operations, repayment of existing debt, share repurchases, short term investments, other equity or debt offerings or other transactions,” SFL told the US Securities & Exchange Commission.
It said it will sell 8m shares to the public. Underwriters have 30-day options to snap up a further 1.2m.
After the announcement of the secondary offering, SFL’s share price slumped 6.7% in after-market trading, bringing it to $13.01.
At that price, the deal could be worth $120m if underwriters exercise all options, although the company has yet to lock in pricing for the sale.
Investment bank Morgan Stanley is serving as book-running manager for the deal, while BTIG is the lead manager, according to the securities filing.
After the underwriter options, SFL will have nearly 147m shares outstanding, meaning the offering puts a 6.3% stake on the market.
The fundraiser was announced on the same day that TradeWinds reported that the diversified shipowner was awarded $27.4m in a legal dispute.
SFL’s fleet spans a wide range of sectors, including bulkers, car carriers, tankers and container ships.
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