First Ship Lease Trust

[CY09]

Hi gaudente,

Please refrain such harsh language without concrete evidence.

<in moderator capacity >

[Gaudente]

without concrete evidence ? After ALL S-shares bankrupted , ALL high yield corporate bonds defaulted , many REITs and trust more than halved in value , Noble and Hyflux bankrupted what more evidence do you need ?

[CY09]

Hi gaudente

We value evidence which is derived from balance sheet, cash flow or p&l. Correlations evidence is not strong and is discriminatory

[donmihaihai]

When an offer is pro rata, there is no dilution effect. It is only when existing unit/shareholder decided not to take up their shares/units that they are being diluted. Huge discount to last trading price not nav basically mean they r pointing a knife to you to take up or diluted

[wonghw12]

When an offer is pro rata, there is no dilution effect. It is only when existing unit/shareholder decided not to take up their shares/units that they are being diluted. Huge discount to last trading price not nav basically mean they r pointing a knife to you to take up or diluted

Largely agree though there is still a degree of dilution because of convertible bonds.

[CY09]

FSL has announced its full year results.

https://links.sgx.com/FileOpen/20190220_...eID=544286

A few takeaways:

I) it is confirmed that the secured loans at of a slightly higher margin than old set of loans (4.012% above LIBOR) approximately 6.7% per annum interest
ii) Cashflow generated from operations has deproved again. Now down to 40 million per year.


Based on its total secured loan of US$97 million, it seems FSL is going to take until 2022 to repay it. On top of it, there is a convertible bond it has to deal with. It looks unitholders will have to wait till 2024 to reap the benefits of the company based on its existing ship portfolio and cashflow analysis

[Gaudente]

https://links.sgx.com/FileOpen/FSL%20MGO...eID=562876
after diluting minority shareholders TWICE at the shameful pittance of 0.045 S$ , Impetus now offers S$ 0.0585 for remaining units against a NAV of 0.25 USD.

[wonghw12]

https://links.sgx.com/FileOpen/FSL%20MGO...eID=562876
after diluting minority shareholders TWICE at the shameful pittance of 0.045 S$ , Impetus now offers S$ 0.0585 for remaining units against a NAV of 0.25 USD.

I think that's the most straightforward way to extract value from the company (from minority investors).

I think there's 2 options for anyone still vested. To hold on to your shares and hope that the share price recover, or bail while your shares still have some value. As I mentioned, to continue staying vested, a lot of faith will be needed. 

I no longer follow the fundamentals of the industry and the company much. Good luck for anyone remaining vested.

[mon]

As I understand it - it was not their intention to make a cash offer.  They are required to make the cash offer given that the whitewash resolution was not passed during the EGM for the preferential offering. Their purchase of shares as part of the preferential offering triggered this requirement.

Rationale
The Offeror is making the Offer in compliance with the requirements of the Code, as the Offeror
together with its Concert Party hold an aggregate of 877,231,095 Units (including the New Units
issued pursuant to the Preferential Offering), representing approximately 55.04% of the issued
Units as of the Offer Announcement Date and approximately 49.59% of the Maximum Potential
Total Units (as defined in paragraph 2.5 above).
Offeror’s Intentions for FSL Trust
The Offeror is the controlling Unitholder of FSL Trust. It is the current intention of the Offeror that
FSL Trust continues with its existing activities and there are presently no plans to make any material
changes to FSL Trust’s existing business, re-deploy its fixed assets or to discontinue the
employment of its employees, except in the ordinary course of business. The Offeror however
retains the discretion and flexibility to conduct a review of the operations of FSL Trust and to
consider any options or opportunities which may present themselves and which it regards to be in
the interests of FSL Trust and its Unitholders following the close of the Offer.

[wonghw12]

As I understand it - it was not their intention to make a cash offer.  They are required to make the cash offer given that the whitewash resolution was not passed during the EGM for the preferential offering. Their purchase of shares as part of the preferential offering triggered this requirement.

Rationale
The Offeror is making the Offer in compliance with the requirements of the Code, as the Offeror
together with its Concert Party hold an aggregate of 877,231,095 Units (including the New Units
issued pursuant to the Preferential Offering), representing approximately 55.04% of the issued
Units as of the Offer Announcement Date and approximately 49.59% of the Maximum Potential
Total Units (as defined in paragraph 2.5 above).
Offeror’s Intentions for FSL Trust
The Offeror is the controlling Unitholder of FSL Trust. It is the current intention of the Offeror that
FSL Trust continues with its existing activities and there are presently no plans to make any material
changes to FSL Trust’s existing business, re-deploy its fixed assets or to discontinue the
employment of its employees, except in the ordinary course of business. The Offeror however
retains the discretion and flexibility to conduct a review of the operations of FSL Trust and to
consider any options or opportunities which may present themselves and which it regards to be in
the interests of FSL Trust and its Unitholders following the close of the Offer.

<sarcasm> Yea, totally not their intention to trigger this given the huge amounts of rights... </sarcasm>