Frontline draws on $1.4 billion credit facility for vessel deliveries

Chicago, Dec. 13 – Frontline Ltd. announced a recent $331.8 million draw on its $1.4 billion senior secured term loan to finance the delivery of six vessels, according to a 6-K filing with the Securities and Exchange Commission.

The company agreed to purchase 24 very large crude carriers (VLCC) for a $2.35 billion purchase price from Euronav NV.

Most of those vessels will be delivered in the fourth quarter and the balance are expected to be delivered in the first quarter of 2024.

The purchase price for the six already delivered vessels was $553 million.

The company is also using $252 million in proceeds from the sale of all of its shares in Euronav to partly finance the acquisition.

Frontline is an Oslo-based oil tanker shipping business incorporated in Bermuda.

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