Frontline announced that it entered into a private agreement to exchange $22.5 million of the outstanding principal amount of its 4.5% convertible bond issue 2010/2015 for an aggregate of 3,984,375 shares for an exchange price of $3.12 a share and a cash payment of $9,562,500 and accrued interest.
The shipping company also agreed to issue up to an additional 760,366 shares to the bond holders on Dec. 23, 2014 if the five-day volume-weighted average price of its shares for the period ending Dec. 22 is lower than the exchange price.
TheStreet Ratings team rates FRONTLINE LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRONTLINE LTD (FRO) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."