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FSL Trust sells tanker to fund newbuilds and repay debt

First Ship Lease Trust (FSL Trust) has disposed of a MR product tanker to fund newbuilding acquisition and make debt repayment.

Net proceeds from the sale of the 2005-built, 47,496-dwt tanker FSL Hamburg will be utilised for partial repayment of FSL Trust’s outstanding bank debt and the remainder of around $6.5m will be used for instalment payments of newbuilding acquisition.

In December 2018, FSL Trust confirmed orders for two LR2 product tankers at a total price of $97.2m with Cosco Shipping Heavy Industry (Yangzhou) Co.

Read more: FSL Trust buys LR2 tanker pair for $97m at Cosco yard

The shipping trust will take an impairment charge of approximately $6.3m on the product tanker.

“In line with the trust’s ongoing fleet renewal strategy, we are pleased to report this disposal, which will help fund the newbuilding acquisition, will reduce the outstanding bank debt thus improving the trust’s risk profile while preparing the trust to take advantage of the expected recovery in the sector,” said Roger Woods, ceo of FSL Trust Management, trustee-manager of FSL Trust.

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