d820638_6-k.htm
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 October 2007
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 October 19, 2007, announcing that the Board of Directors
of the
Company has approved a share repurchase program of up to seven million
shares.
Exhibit
1
SFL
- Share repurchase program
Press
release from Ship Finance International Limited, October 19,
2007
Hamilton,
Bermuda. October 19, 2007. Ship Finance International
Limited (NYSE:SFL) (“Ship Finance” or the “Company”) today announced that the
Board of Directors has approved a share repurchase program of up to 7 million
shares. Initially, the intention is to finance all or a part of this by the
use
of total return swaps (“TRS” or “Equity swap”) with international banks (the
“Banks”).
After
a review of its long-term prospects and dividend capacity, the Company’s Board
of Directors has concluded that a share repurchase program in combination with
a
financing arrangement can enhance the returns for our shareholders while at
the
same time preserving the Company’s capacity for new accretive asset
acquisitions.
The
maturity of the TRS agreements will be up to 12 months, and the Banks will
be
compensated for their carrying cost plus a margin. Based on the latest announced
dividend and the current share price, the annualized dividend yield on Ship
Finance’s shares well exceeds the financing costs for the Equity swap
program.
Mr.
Craig H. Stevenson, Chairman in Ship Finance, said in a comment: “The share
repurchase program and related financing confirms the Company’s strategy of
maximizing returns for shareholders. The long-term dividend capacity is
supported by a very high fixed-rate charter revenue backlog, while short-term
market movements in the share price may be influenced by other factors. All
companies should have the flexibility to do the most accretive deals for its
shareholders, and with the announced share repurchase program, Ship Finance
will
be in a position to also take advantage of opportunities relating to the pricing
of the shares in the market”.
October
19, 2007
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 vessel owning company listed on the New York Stock Exchange
(NYSE: SFL). Including newbuildings and announced acquisitions, Ship Finance
has
a fleet consisting of 71 vessels, including 37 crude oil tankers (VLCC and
Suezmax), 8 oil/bulk/ore vessels, 13 container vessels, 3 dry bulk carriers,
2
jack-up drilling rigs and 5 offshore supply vessels and 3 seismic vessels.
The
fleet is one of the largest in the world with a total cargo capacity of more
than 11 million dwt. and most of the vessels are employed on medium or 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
authorised.
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Ship
Finance International Limited
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Dated: October
19, 2007
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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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