First Ship Lease Trust

[wonghw12]

Navios Maritime may be in a worse position than FSL. The bonds has a coupon of 7.375% and is trading below water at $81.50.
https://sportsperspectives.com/2017/05/2...lower.html

If Navios does eventually take up a stake in FSL, I think there's a chance dividend will be restarted. Navio's capital injection should resolve FSL's refinancing issue, and Navios should have the incentive to upstream the cash from FSL via dividends.

[Boon]

Navios Maritime Holdings : Earnings under pressure, but headwinds ease; maintain Neutral
in  Hellenic Shipping News 26/05/2017
http://www.hellenicshippingnews.com/navi...n-neutral/
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[ZZF]

could the recent drop below 8 cts be attributed to the recent report of reit/trust governance? FSL ranked last.

[CY09]

Hi ZZF,

Please provide a little elaboration on your post such as providing the link to the REIT governance article. Thanks

[ZZF]

Hi ZZF,

Please provide a little elaboration on your post such as providing the link to the REIT governance article. Thanks

http://www.businesstimes.com.sg/real-est...ance-index

[CY09]

http://infopub.sgx.com/FileOpen/20170803...eID=465387

FSL's Q2 results have been released. One of the down point is that revenue from its charter has been steadily decreasing (likely due to expiry of its old charters and sending the ships into the pool market). The trust has taken another impairment on its shipping assets.

As of 2Q, debt is at US$181 mil, cash flow generated is 13.9mil. Based on this cash flow basis, FSL is still on track to clear its debts by 2021 if the new interest rate it negotiates for is 5.5% or below. After which, the value of its ships (be it scrap or charter revenue) will be entirely of the shareholders.

IMO with the low BBCE generated from its feeder container ship and one of the feeder container up for dry docking (FSL Santos) in 1Q 2018, the trust should scrap the ship to raise 1-2 mil instantly.

[CY09]

KGI Analyst, Mr. Joel Ng, has done up a coverage on FSL.

His two methods of valuation is similar to what has been covered in this thread- i) Estimated Liquidation Value and ii) Cash flow analysis. Based on VB member's estimation and that of the analyst; it seems if FSL really does a sale of its fleet based on market valuations, the expected NAV of the trust would be more than current share price of 9.9 cents

Glad to see FSL being covered by analyst now

<vested>

[wonghw12]

Anyone knows the reason why FSL traded higher? Seems that other shipping companies have also risen significantly in the past week (e.g. Navios Maritime, Euronav, Seaspan, Ardmore Shipping, just to name a few)

[karlmarx]

Deal with Navios has been terminated.

'The Trustee-Manager wishes to announce that definitive agreements for the Proposed
Transaction were not agreed by 30 September 2017 and the Term Sheet has been automatically
terminated in accordance with the terms thereof.'

http://infopub.sgx.com/FileOpen/First%20...eID=472571

Will FSL start selling its vessels?

[yeokiwi]

Deal with Navios has been terminated.

'The Trustee-Manager wishes to announce that definitive agreements for the Proposed
Transaction were not agreed by 30 September 2017 and the Term Sheet has been automatically
terminated in accordance with the terms thereof.'

http://infopub.sgx.com/FileOpen/First%20...eID=472571

Will FSL start selling its vessels?

Generally, this is a good new since the Navios terms are not favourable.
I am more inclined to think that the bank will extend the loan or some other financial institution will take over the loan.

Money is on the table now.