Ship Finance International Limited (“Ship Finance” or the “Company”) has sold its VLCC Front Tobago for gross sales proceeds of USD 45 million. Delivery to buyers will take place in January 2007. Upon delivery of the vessel to the buyers, the long term charter party to Frontline Shipping II Ltd. will be terminated, and Ship Finance will make a compensation payment for the early termination of the charter party.
Ship Finance has also signed an agreement with the banks in the USD 1,131 million main loan facility, whereby the facility has been increased by USD 219.7 million to the original outstanding of USD 1,131 million. The increase is available on a revolving basis, and the intention is that the proceeds will be used to fund the equity portion of new projects and thereby secure the future growth of the Company.
September 29, 2006
The Board of Directors
Ship Finance International Limited