The John Fredriksen-controlled tanker company said it had entered into a private agreement with bondholders to exchange some of the 4.5% convertible notes for 7.4m shares at a price of $1.61 each.
This was the closing price in New York on 24 October.
The deal also includes a cash payment of $10m plus interest.
Frontline has also agreed to issue another 800,000 shares if the five-day price is lower than the exchange price by 3 November.
Frontline
