FSL Trust Secures Refinancing for Chemical Tanker Pair

FSL Trust Management Pte, the trustee-manager of First Ship Lease Trust, has obtained a commitment from an undisclosed bank for the refinancing of a chemical tanker duo.

The trustee manager said that it had accepted an offer letter from the bank for a senior secured amortizing term loan of up to USD 18 million. The offer is subject to  definitive transaction documentation.

The company said two weeks ago that it had been considering refinancing options for two ships, FSL New York and FSL London. The refinancing option is being pursued as a way of repaying the trust’s loans. The sale of the ships had also been explored, however, the currently poor market conditions would not bring a favorable cash injection from the vessels’ disposal.

The company has also managed to secure an extension from Singapore’s High Court for the convening of a meeting with lenders. The deadline has been extended until June 29 until when the lenders need to decide whether to approve a scheme of arrangement with the company.

The trustee manager added that it had completed a bond issue with the issuance of USD 7,250,000 bonds.

The company has been very busy with its efforts aimed at reducing outstanding debt.

To that end, it sold its chemical tanker FSL Tokyo for a cash consideration of USD 13.8 million in January 2018.