Third time i've tried to post this, will not let me post the link. its worth searching for artical.seekingalphaarticlefrontline-sacrifices-huge-upside-for-greater-stability
Deal was good for Fro but better for SFL.
A small part of article:
" The Good
Arguably, even though the terms strongly favor SFL, both in the short and long term perspectives, this deal does a lot of good for Frontline as well (although certainly not worth 55M shares of new equity).
1.Frontline now has a pristine balance sheet and industry competitive breakeven rates.
2.Frontline has practically eliminated their bankruptcy risk during a weak market- they have transitioned from one of the weakest players to one of the strongest players in only 6-8 months.
3.Frontline is now eligible for a merger, perhaps even close to a 'merger of equals' with Frontline 2012 (F12).
4.The increased equity will also increase the market cap while keeping the float stable as its unlikely SFL will dispose of their shares anytime soon (although I would expect an eventual spinoff of FRO shares to SFL holders