First Ship Lease Trust (FSL Trust) announces its memoranda of an agreement to sell two LR2 product tanker new buildings, reports The Edge.
About the agreement
FSL Trust said its wholly-owned subsidiaries have executed memoranda of agreement to sell two LR2 product tanker newbuilding, the FSL Suez and FSL Fos to an unrelated third party.
According to FSL Trust, it has received the initial 15% deposit in escrow.
Waivers disclosed
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.
Zero-interest bridge facility
To finance the final installments payable to the shipyard, FSL Trust has utilized 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.
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Source: The Edge
