Bermuda-based shipping giant Frontline yesterday announced it had commenced an offer to exchange outstanding senior notes for its its wholly-owned subsidiary Ship Finance International.

The exchange offer for the 8.5 percent senior notes, which are due December 15, 2013, after being issued in a private placement last December, was said by Frontline to have been launched in order to "satisfy certain obligations under a registrations right agreement entered into by it and the initial purchasers of the outstanding notes".

The exchange offer and the right to withdraw any outstanding notes that are tendered in the exchange offer are due to expire on July 26.