FSL Trust reduces debt facility and FY2018 debt repayments with disposal of vessel

By Vessels

FSL Trust Management Pte. Ltd. (FSLTM), as trustee-manager of First Ship Lease Trust (FSL Trust), announces that the Trust has sold its chemical tanker, FSL Tokyo (Disposal), for a cash consideration of US$13.8 million.

FSL Trust reduces debt facility and FY2018 debt repayments with disposal of vessel
Caption: Chemical/Oil Products Tanker FSL Tokyo - Image courtesy of Miranda Reiffers Te Loo

FSL Tokyo is a 2006, Japanese-built, 20,938 DWT chemical tanker that has been deployed in the spot market. The net proceeds from this Disposal will be applied in full to the outstanding loan facility in 1Q2018. FSL Trust will record a related impairment charge of approximately US$9.0 million in 4Q2017.

Roger Woods, Chief Executive Officer of FSLTM commented: “The sale of the vessel was undertaken to further reduce the debt due under the Syndicated Loan facility. The amount outstanding under the facility following the application of the sale proceeds of FSL Tokyo will be US$138 million which represents a very significant reduction from the debt outstanding in June 2013 of US$425 million when there were significant changes in the Trust’s Board and Management. The Board and Management are continuing to pursue solutions for refinancing the Trust.”

Source: FSL