First Ship Lease Trust

[wonghw12]

Still no news on refinancing... But a good piece of news is that the implied NAV is min ~16cts / share, based on 1.4x VTL ratio.

Outright asset sales or sale of the entire company to realize the NAV would be great if it happens. However, given the weak sponsorship and track record of the company with no edge over other shipping peers, I think equity raising will not be ideal.

IMO more impairments still need to be done to bring book NAV closer to true NAV.

[weijian]

Is there any incentive for Mgt to sell the entire company (ie. to realize the NAV)? There would - if there is a breakup fee. Else it might be easier for Mgt to continue to draw salary from the Trust and have the Trust to keep paying interest on its loans.

[wonghw12]

So far, the owner of the trustee and the largest shareholder is selling its stake. It should depend more on the new buyer (rather than the management) if FSL should be privatized, or do rights and expand/renew the fleet.

Without a new buyer, my sensing from the earnings call is that the management is leaning towards refinancing (for the next 12 months) and conducting a rights issue.

In another scenario, there's no deal to refinance and the trust proceeds to liquidation.

[CY09]

Kind of agree with Weijian, the Trustee Mgmr seems more willing to get its mgmt fees until the ships in the fleet reaches it scrapping age.

The Trustee Mgmr holds slightly more than 30% stake, this makes it difficult to change the TM, unless they is an emergence of a second meaningfully large shareholder. In the case of rights, the current owner of the TM does not have the financial muscle to subscribe to all of its rights. This means should FSL do an equity raising to salvage the situation and reduce incurring interest expense which will put the Trust on a less precarious footing; the TM risks lowering its stake to below 30%. This may result in it being kicked out of its current money making position.

This is probably why the TM prefers things to muddle through, collect annual mgmt fee and wait for its parent company to complete the sale of its stake (which will carry a premium to current market share price).

Lastly, do take note of this coming Thursday announcement (Wednesday Afternoon European time announcement). It is likely that Nordbank will be sold and this may mean changes of TM at FSL and possibly a rights issue.

http://www.hellenicshippingnews.com/hsh-...s-sources/

<vested>

[ZZF]

FSL has changed their sponsor and loan extended one year to get refinancing. Some breathing space at last.

But any idea why is it not required to state the price they bought at from the ex sponsor?



The Board of Directors of FSL Trust Management Pte Ltd, as trustee-manager of First Ship Lease Trust (the “Trustee-Manager”), has been informed that Godan GMBH (“Godan”), the controlling Unitholder of First Ship Lease Trust (the “Trust”) and the sole shareholder of FSL Holdings Pte Ltd (“FSL Holdings”), has on 28 February 2018 entered into and completed a sale and purchase agreement (“SPA”) for the sale of all of its shares in FSL Holdings to Prime Shareholdings Inc. (the “Purchaser”) an affiliate of Prime Tanker Management Inc (“Prime”)[1]. FSL Holdings is the Sponsor of the Trust and Godan is a subsidiary of HSH Nordbank AG. FSL Holdings, through FSL Asset Management Pte Ltd, owns all of the shares of the Trustee-Manager.

The Trustee-Manager understands that the Prime group was founded in 1998 and has since grown to become a leading international ship-owning and management group, headquartered in Athens with 150 shore-based employees. Prime currently manages a significant operating and commercial platform, consisting of 27 double-hull product tankers, 2 Suezmax oil tankers and 7 LPG carriers with an aggregate tonnage of approximately 2.5 million dwt.

[btws548]

FSL has changed their sponsor and loan extended one year to get refinancing. Some breathing space at last.

But any idea why is it not required to state the price they bought at from the ex sponsor?



The Board of Directors of FSL Trust Management Pte Ltd, as trustee-manager of First Ship Lease Trust (the “Trustee-Manager”), has been informed that Godan GMBH (“Godan”), the controlling Unitholder of First Ship Lease Trust (the “Trust”) and the sole shareholder of FSL Holdings Pte Ltd (“FSL Holdings”), has on 28 February 2018 entered into and completed a sale and purchase agreement (“SPA”) for the sale of all of its shares in FSL Holdings to Prime Shareholdings Inc. (the “Purchaser”) an affiliate of Prime Tanker Management Inc (“Prime”)[1]. FSL Holdings is the Sponsor of the Trust and Godan is a subsidiary of HSH Nordbank AG. FSL Holdings, through FSL Asset Management Pte Ltd, owns all of the shares of the Trustee-Manager.  

The Trustee-Manager understands that the Prime group was founded in 1998 and has since grown to become a leading international ship-owning and management group, headquartered in Athens with 150 shore-based employees.  Prime currently manages a significant operating and commercial platform, consisting of 27 double-hull product tankers, 2 Suezmax oil tankers and 7 LPG carriers with an aggregate tonnage of approximately 2.5 million dwt.

Refer to "Others" section in the second last page of Form 3 for the clarification:  

"On 28 February 2018, Godan GmbH (“Godan”), a whollyowned subsidiary of HSH Nordbank AG, entered into a sale and purchase agreement with Prime Shareholdings Inc. (“Prime”) for the sale of 6,394,736 ordinary shares to Prime representing 100% of the issued and paid up share capital of FSL Holdings Pte Ltd (“FSLH”) for a consideration of US$1.00. Concurrent with the sale of shares in FSLH, Prime has also purchased from HSH Nordbank AG, Singapore Branch, for other valuable consideration, all its rights and obligations in respect of an outstanding loan."

[wonghw12]

FSL has changed their sponsor and loan extended one year to get refinancing. Some breathing space at last.

But any idea why is it not required to state the price they bought at from the ex sponsor?



The Board of Directors of FSL Trust Management Pte Ltd, as trustee-manager of First Ship Lease Trust (the “Trustee-Manager”), has been informed that Godan GMBH (“Godan”), the controlling Unitholder of First Ship Lease Trust (the “Trust”) and the sole shareholder of FSL Holdings Pte Ltd (“FSL Holdings”), has on 28 February 2018 entered into and completed a sale and purchase agreement (“SPA”) for the sale of all of its shares in FSL Holdings to Prime Shareholdings Inc. (the “Purchaser”) an affiliate of Prime Tanker Management Inc (“Prime”)[1]. FSL Holdings is the Sponsor of the Trust and Godan is a subsidiary of HSH Nordbank AG. FSL Holdings, through FSL Asset Management Pte Ltd, owns all of the shares of the Trustee-Manager.  

The Trustee-Manager understands that the Prime group was founded in 1998 and has since grown to become a leading international ship-owning and management group, headquartered in Athens with 150 shore-based employees.  Prime currently manages a significant operating and commercial platform, consisting of 27 double-hull product tankers, 2 Suezmax oil tankers and 7 LPG carriers with an aggregate tonnage of approximately 2.5 million dwt.

Refer to "Others" section in the second last page of Form 3 for the clarification:  

"On 28 February 2018, Godan GmbH (“Godan”), a whollyowned subsidiary of HSH Nordbank AG, entered into a sale and purchase agreement with Prime Shareholdings Inc. (“Prime”) for the sale of 6,394,736 ordinary shares to Prime representing 100% of the issued and paid up share capital of FSL Holdings Pte Ltd (“FSLH”) for a consideration of US$1.00. Concurrent with the sale of shares in FSLH, Prime has also purchased from HSH Nordbank AG, Singapore Branch, for other valuable consideration, all its rights and obligations in respect of an outstanding loan."

Still doesn't tell us much about the amount that the shares were disposed for. Though we know the min disposal consideration is USD1... Wonder what's 'valuation consideration'...

[Behappyalways]

hsh-sells-fsl-trust-stake-prime-tanker-management
http://splash247.com/hsh-sells-fsl-trust...anagement/

[CY09]

Not to sound bias

Prime Tanker is a company managing 1 MR, 25 LR1, 1 LR2, 1 Suezmax and 6 gas carriers. Most of the ships are of a larger capacity and longer range than that of FSL

FSL is managing about 19 ships of which 16 vessels have similarity to that of Prime Tanker's (2 Afra, 2 LR2 & 3 MR).

There is a lot of synergy and i may not be surprised if Prime Tanker uses FSL as a vehicle to unload its assets and earn mgmt fee for managing the pool of assets. Injecting assets into FSL with minimal leverage may also mean an improvement in FSL's balance sheet.

<vested>

[ZZF]

Not to sound bias

Prime Tanker is a company managing 1 MR, 25 LR1, 1 LR2, 1 Suezmax and 6 gas carriers. Most of the ships are of a larger capacity and longer range than that of FSL

FSL is managing about 19 ships of which 16 vessels have similarity to that of Prime Tanker's (2 Afra, 2 LR2 & 3 MR).

There is a lot of synergy and i may not be surprised if Prime Tanker uses FSL as a vehicle to unload its assets and earn mgmt fee for managing the pool of assets. Injecting assets into FSL with minimal leverage may also mean an improvement in FSL's balance sheet.

<vested>

Injecting assets? Maybe. But at what cost to other shareholders? 
Anyway, the most important thing is still to refinance and hope the shipping rates recover towards the 2H of 2018, if what they have guided comes true. 

-vested-