FRNT - Frontline 2012 Ltd. Completed Private Placement
January 11, 2013 - London
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Frontline 2012 Ltd. ("Frontline 2012" or the "Company") is pleased to announce that it has completed a private placement of 59 million new ordinary shares of $2.00 par value at a subscription price of $5.25, raising $310 million in gross proceeds to the Company (the "Private Placement").
The proceeds from the Private Placement will be used to part finance new building investments. These investments includes four Capesize newbuilding contracts and four VLGC newbuilding contracts already committed and leaves capacity for significant further contracts which are currently at an advanced negotiating stage or can be exercised through existing option agreements.
The Private Placement was significantly oversubscribed and the shares have been successfully placed with high quality investors who support the long term strategy of building Frontline 2012 into the leading global commodity shipping company focused on modern fuel efficient tonnage.
RS Platou Markets AS, DNB Markets, Fearnley Fonds, Arctic Securities and SpareBank 1 Markets have acted as joint lead managers and book-runners for the Private Placement.
The Board of Directors
Frontline 2012 Ltd.
January 10, 2013
Jens Martin Jensen: Chief Executive Officer, Frontline Management AS
+47 23 11 40 99
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76
This document is only addressed to and is only directed at persons in member states of the European Economic Area (the "EEA") who are "qualified investors" within the meaning of Article 2.1(e) of the Prospectus Directive (Directive 2003/71/EC). In addition, in the United Kingdom, these materials are directed solely at persons who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) are persons falling within Article 49(2)(a) to (d) of the Order and other persons to whom it may lawfully be communicated (all such persons together being referred to as "relevant persons"). These materials are addressed only to, and directed only at, relevant persons and qualified investors and must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons or (ii) in any member state of the EEA other than the United Kingdom, by qualified investors. Any investment or investment activity to which these materials relate is available only to, and will be engaged in only with, in the United Kingdom, relevant persons, and in any member state of the EEA other than the United Kingdom,
Forward Looking Statements
This press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Frontline 2012 Ltd's management's examination of historical operating trends. Although Frontline 2012 Ltd believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Frontline 2012 cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this press release include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC's petroleum production levels and world wide oil consumption and storage, changes in the Company's operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Frontline 2012 Ltd. via Thomson Reuters ONE