First Ship Lease Trust

[CY09]

FSL has announced for a trading halt today, with the reason "pending release of announcement". If anyone is guessing a big announcement is going to occur - my answer is probably not.

The halt is likely due to the high court hearing on FSL's application under the companies Act for the scheme of arrangement; nothing material announcement.

[Retired@52]

The Announcement is out. Looks positive. See Link below: 

http://infopub.sgx.com/FileOpen/Announce...eID=482948

[yawnyawn]

The Announcement is out. Looks positive. See Link below: 

http://infopub.sgx.com/FileOpen/Announce...eID=482948

This looks positive,

If a new strategic shareholder comes on board, the refinancing talks can be restarted next year, provided the loan extension is successful.

Hopefully, the terms would be better for minority shareholders than the previous Navios deal which was dilutive to minority shareholders.

(vested)

[lonewolf]

Another ship sold. Outstanding loan US$138 million.

Light at the end of the tunnel - finally?

SGX Announcement: FSL Trust reduces debt facility and FY2018 debt repayments with disposal of vessel

[CY09]

Based on current annual repayment of 44mil at a 4.5% interest rate (LIBOR + 2.8%), FSL is able to repay all debts by 2021. This will coincide with the end of the last Yangming Container contract.

With the sale of FSL Tokyo and FSL Santos largely in line with the KGI's projected value of the fleet, it seems one can value the current fleet to be at US $205mil. Netting off an estimated debt level of $140 mil, applying a 10% discount to the fleet and adding US$18mil cash, the net asset value of FSL can be conservatively estimated to be at US$62 miilion. At current share price of 0.09, there seems to be value in FSL.

<vested>

[lonewolf]

Another ship sold. Outstanding loan amount US$132 Million.

SGX Announcement: FSL Trust reduces further debt facility and FY2018 debt repayments with disposal of vessel

[Behappyalways]

yang-ming-proceeds-plans-bring-20-boxships
http://splash247.com/yang-ming-proceeds-...-boxships/

[CY09]

Seems like the lucrative Yangming contract will be stopped in 2021. Pherhaps it will be good for FSL to consider scrapping them.

Recently, a similar 4,923 TEU container ship was scrapped for demoliiton. It was 12 years old and scrapped at a price of US$9 mil. It will be good money for FSL to scrap its similar ships come 2021.

http://splash247.com/diana-containership...hip-scrap/

[CY09]

FSL's full year results is out and the trust has taken another massive impairment.

http://infopub.sgx.com/FileOpen/20180226...eID=490202

Q4 cashflow has deteriorated as compared to Q3. The trust is generating 10.5mil in Ops Cash flow now. With a cash balance of 13.2 mil and a debt level of 132 Mil (after disposal of all the ships), it is likely for FSL to repay all its debts only at end 2021. This will incur at least 10 mil in interest expense.

IMO, FSL should quickly do an equity raising of s$39mil (approx US$30mil) or sale of some of its ships to lower the principal. The raising of rights will be more ideal as it adds to the cash balance of 13.2 mil, allowing FSL to have an option of redeeming the loan principal of banks who are not supporting the refinancing of the loan facility.

[Boon]

FSL's full year results is out and the trust has taken another massive impairment.

http://infopub.sgx.com/FileOpen/20180226...eID=490202

Q4 cashflow has deteriorated as compared to Q3. The trust is generating 10.5mil in Ops Cash flow now. With a cash balance of 13.2 mil and  a debt level of 132 Mil (after disposal of all the ships), it is likely for FSL to repay all its debts only at end 2021. This will incur at least 10 mil in interest expense.

IMO, FSL should quickly do an equity raising of s$39mil (approx US$30mil) or sale of some of its ships to lower the principal. The raising of rights will be more ideal as it adds to the cash balance of 13.2 mil, allowing FSL to have an option of redeeming the loan principal of banks who are not supporting the refinancing of the loan facility.

The Trustee-Manager, on behalf of FSL Trust, secured a 6-year amortising loan facility in December 2011. This facility expired on 20 December 2017 and negotiation with the Syndicated Lenders is ongoing for an extension of the maturity date by one year to allow for the refinancing of this facility. The outstanding face value of the loan balance was US$151.3 million as at 31 December 2017.

A majority of the lenders under the Syndicated Loan Facility have indicated their support for the Extension to the Trustee-Manager. The Extension would require the consent of all lenders under the Syndicated Loan Facility, unless the Trustee-Manager were to be successful in obtaining protection through a scheme of arrangement under section 210 of the Companies Act (Chapter 50) (“the Scheme”). To this end, the Trustee-Manager made an application to the High Court of Singapore on 18 December 2017 with regard only to its obligations under the Syndicated Loan Facility. The Scheme proposes the extension on terms that the Trustee-Manager believes the majority of the lenders have indicated their support for. FSLTM remains wholly committed to achieving a resolution for the long term future of the Trust. 
_____________________________________________________________________________________________________________________

The loan facility has expired on 20 Dec 2017 without being refinanced........................The Extension would require the consent of all lenders under the Syndicated Loan Facility, unless the Trustee-Manager were to be successful in obtaining protection through a scheme of arrangement.................