FSL Trust to sell two vessels

TWO units of First Ship Lease Trust (FSL Trust) have entered an agreement to sell two LR2 product tanker new-building vessels, the FSL Suez and FSL Fos, the firm's trustee-manager announced in a Wednesday bourse filing.

The vessels are being sold to an unaffiliated third party following their deliveries from COSCO Shipping Heavy Industry. FSL Trust has received the initial 15 per cent deposit in escrow. Details of the net proceeds will be announced at a later date.

FSL Trust's trustee-manager has waived the acquisition fee of 1.0 per cent on the purchase price, as well as the divestment fee of 0.5 per cent on the disposal price, that would otherwise be payable to it.

To finance the final instalments to the shipyard, FSL Trust has tapped existing resources and the proceeds of a US$12.5 million zero-interest bridge facility that two units of the trust entered with Prime Shareholdings, the owner of its sponsor.

Units of FSL Trust closed at S$0.08 on Wednesday, up 2.56 per cent.