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FSL Trust secures US$18m loan offer to refinance chemical tankers; completes US$7.25m bond issue

FIRST Ship Lease Trust said on Tuesday it has secured a loan offer to refinance its remaining two chemical tankers and completed a US$7.25 million bond issue.

In a filing to the Singapore Exchange, FSL Trust Mangement said it had on May 17 accepted a bank offer for a senior secured amortising term loan of up to US$18 million to refinance its tankers, FSL New York and FSL London.

The offer is subject to, amongst others, entry by the parties into definitive transaction documentation.

The trustee-manager also said that its issue of redeemable 7 per cent convertible bonds to raise US$7.25 million was completed on May 21.

Among other things, the deal was conditional upon approval from SGX for the listing and quotation of up to about 127.5 million new units on SGX's mainboard.

FSL Trust Mangement has made an application to list the new units to be allotted and issued upon the conversion of the bonds, and the parties have agreed to waive the foregoing condition, provided it is satisfied within 10 business days of May 21.

The trustee-manager also noted that the Singapore High Court has granted an extension of time to June 29, 2018 for the company to convene a meeting to consider a proposed scheme of arrangement to facilitate the extension of a syndicated loan facility due on Dec 20, 2017.

"The trust remains in a substantial net equity position and the business and operations of the trust will continue in the normal course," FSL Trust Management said.

Units in First Ship Lease Trust last traded unchanged to close at S$0.082 per unit on Tuesday.

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