SFL – Contemplated bond issue

Press release from Ship Finance International Limited, October 8, 2012

Ship  Finance International Limited (NYSE: SFL) (“Ship Finance” or the “Company”) announces  that it  intends to issue new bonds in the Norwegian bond market  with maturity in October 2017 and a minimum borrowing amount equivalent to approximately USD 100 million. The proceeds from the bonds are expected to be used to refinance existing debt and for general corporate purposes.

A portion of the new bond loan may be offered to qualified institutional investors in the United States pursuant to Rule 144A of the U.S. Securities Act of 1933, as amended (the “Securities Act”) or another available exemption from registration under the Securities Act, and will be concurrently offered outside of the United States pursuant to Regulation S of the Securities Act.

Swedbank First Securities has been appointed as sole arranger of the new contemplated bond issue.

This press release is neither an offer to sell nor a solicitation of an offer to buy any of the bond or any other security of the Company.  The bond loan has not been registered under the Securities Act or any state securities laws, and is being offered for resale only to qualified institutional buyers in reliance on Rule 144A under the Securities Act.  Unless so registered, the bond loan may not be offered or sold in the United States except pursuant to an exemption from registration requirements of the Securities Act and applicable state securities laws.


The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda

Questions should be directed to:
Arne Jacobsen, Swedbank First Securities
+47 23116273

Ole B. Hjertaker, Chief Executive Officer, Ship Finance Management AS
+47 23114011
Magnus T. Valeberg, Senior Vice President, Ship Finance Management AS
+47 23114012

About Ship Finance

Ship Finance is a leading ship-owning company with one of the largest and most diverse asset bases across the maritime and offshore industries.  It is listed on the New York Stock Exchange and trades under the symbol “SFL.”  Including newbuildings, the Company has a fleet of 67 vessels that consists of 25 crude oil tankers (VLCC and Suezmax), two chemical tankers, three oil/bulk/ore vessels, 12 drybulk carriers including, two newbuildings, 15 container vessels including, four newbuildings, six offshore supply vessels, one jack-up drilling rig, one ultra-deepwater drillship and two ultra-deepwater semi-submersible drilling rigs. Most of the vessels and offshore drilling units are employed on long-term charters.  More information can be found on the Company’s website: www.shipfinance.org

Cautionary Statement Regarding Forward Looking Statements

This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Ship Finance management’s examination of historical operating trends. Although Ship Finance 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, Ship Finance 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 presentation 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 worldwide 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 with the United States Securities and Exchange Commission.