FSL Trust to sell two LR2 product tanker newbuildings

First Ship Lease Trust (FSL Trust) says its wholly-owned subsidiaries have executed memoranda of agreement to sell two LR2 product tanker newbuildings, the FSL Suez and FSL Fos to an unrelated third party.

The sale comes after the vessel’s deliveries from COSCO Shipping Heavy Industry (Yangzhou) or the shipyard.

FSL Trust says it has received the initial 15% deposit in escrow.

The trustee-manager of the Trust adds that it has decided to waive the acquisition fee of 1.0% on the purchase price, as well as the divestment fee of 0.5% on the disposal price due to the quick turnaround time on the delivery of the vessels from the shipyard and their disposal.

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SEE: FSL Trust closes 32% higher after 5.85-cent offer from sponsor announced

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To finance the final instalments payable to the shipyard, FSL Trust has utilised its existing liquidity and the proceeds of a zero-interest bridge facility amounting to US$12.5 million ($16.6 million) that two wholly-owned subsidiaries of the trust have entered into with Prime Shareholdings.

Prime is the sole shareholder of FSL Holdings, the sponsor of the trust.

The bridge facility is secured by a guarantee of the trust, bears no interest or fees and will be repayable to Prime following the completion of the disposals of the vessels.

Shares in FSL Trust closed 0.2 cent higher or 2.6% up at 8 cents on Feb 17.