UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES
EXCHANGE ACT OF 1934
For
the month of May 2008
Commission
File Number: 0-22704
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Ship
Finance International Limited
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(Translation
of registrant’s name into English)
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Par-la-Ville
Place, 14 Par-la-Ville Road, Hamilton, HM 08, Bermuda
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(Address
of principal executive office)
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Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F [X] Form 40-F
[ ]
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): ___
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)7: ___
Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes
[_] No [X]
If
“Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
82-______________.
INFORMATION
CONTAINED IN THIS FORM 6-K REPORT
Attached
as Exhibit 1 is a copy of the press release of Ship Finance International
Limited (the “Company”) dated May 19, 2008, announcing the Company’s acquisition
of an ultra-deepwater drillship and its intention to increase its quarterly
dividend.
Exhibit
1
SFL
– $850 million acquisition of an ultra-deepwater drillship and intention to
increase quarterly dividend
Press
release from Ship Finance International Limited, May 19, 2008
Ship
Finance International Limited (NYSE: SFL) (“Ship Finance” or the “Company”),
today announced that it has entered into an agreement to acquire the newbuilding
ultra-deepwater drillship West Polaris, from a subsidiary of Seadrill Limited
(“Seadrill”).
With
a total acquisition cost of approximately $850 million, this is a
record-breaking sale/leaseback transaction in the maritime industry. The vessel
is expected to be delivered end of June 2008 from Samsung Heavy Industries in
South Korea, and will be chartered back to the seller for 15 years on a bareboat
basis, fully guaranteed by Seadrill.
The
Company has received commitments for a $700 million loan facility from a
syndicate of leading international banks, and the remaining $150 million will be
funded from the Company’s available liquidity.
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West
Polaris will be employed initially by Seadrill on a 4 year contract to Esso
Exploration Inc., a subsidiary of Exxon Mobil Corporation. This contract has a
value of approximately $815 million, and start-up of operations under the
contract is expected to be three months after delivery from the
shipyard.
The
aggregate charter payments from Seadrill over the first 51 months will be
approximately $491 million (including $10 million in the first three-month
mobilization period). For the remaining lease period, the aggregate lease
payments will be approximately $631 million.
Seadrill
has been granted several fixed price purchase options, first time after 51
months at $548 million and last time after 15 years at $177.5
million.
The
$700 million loan facility will have a 5 year term and the average annual
repayment of debt will be approximately $65 million per year in this period. The
average annual net cash contribution, after estimated interest expense and debt
repayment, will be approximately $23 million, or $0.32 per share.
Based
on this highly accretive transaction, the Company intends to increase the
quarterly dividend by two cents per share in the third quarter, when the new
drillship is delivered and has commenced its operation.
Lars
Solbakken, Chief Executive Officer in Ship Finance Management AS, said in a
comment: “We are very pleased to announce our first acquisition of an
ultra-deepwater drillship. Seadrill is among the world’s leading offshore
drilling contractors with a market capitalisation in excess of USD 13.5 billion.
They have a fleet of state-of-the-art ultra-deepwater drilling units and an
impressive fixed contract backlog, currently in excess of $12 billion.
Furthermore, this investment in the oil exploration sector confirms our strategy
to continue diversifying the asset base and grow our long-term charter
business.
The
strong fundamentals of the offshore industry combined with long term charter
coverage and high quality credit counterparts makes this a very attractive
industry for us to invest in. We see a large potential in providing further
flexible solutions to Seadrill as well as assisting other major offshore
companies to optimize their capital structure and create flexibility for further
growth.
Over
the last 12 months, Ship Finance has announced new investments of approximately
$1.5 billion, and our fixed-rate charter backlog, excluding profit share, is
currently in excess of $6.6 billion.”
May
19, 2008
The
Board of Directors
Ship
Finance International Limited
Hamilton,
Bermuda
Contact
Persons:
Lars
Solbakken: Chief Executive Officer, Ship Finance Management AS
+47
2311 4006 / +47 9119 8844
Ole
B. Hjertaker: Chief Financial Officer, Ship Finance Management AS
+47
2311 4011 / +47 9014 1243
About
Ship Finance
Ship
Finance is a major ship owning company listed on the New York Stock Exchange
(NYSE: SFL). Including newbuildings and announced acquisitions, the Company has
a fleet of 73 vessels, including 35 crude oil tankers (VLCC and Suezmax), 2
chemical tankers, 8 oil/bulk/ore vessels, 13 container vessels, 3 dry bulk
carriers, 6 offshore supply vessels, 3 seismic vessels, 2 jack-up drilling rigs
and one ultra-deepwater drillship. The fleet is one of the largest in the world
and most of the vessels 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 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 with the United States Securities and Exchange
Commission.
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly
authorized.
SHIP
FINANCE INTERNATIONAL LIMITED
(registrant)
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Dated: May
19, 2008
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By:
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/s/ Lars
Solbakken
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Name:
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Lars
Solbakken
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Title:
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Chief
Executive Officer
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Ship
Finance Management AS
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SK 23153 0001
884960