FSL adds to credit line despite uncertain market
Singapore-based FSL Trust Management Pte., trustee-manager of First Ship Lease Trust, said Thursday it has obtained an additional revolving credit facility of up to $65 million.
FSL will use the additional credit to secure the acquisition of YM Enhancer, the third and final vessel to be delivered in October under a previously announced acquisition agreement with Taiwan-based Yang Ming Marine Transport Corp.
The additional credit facility augments FSL’s previous $450 million revolving credit facility. The new line of credit will be provided by a syndicate of banks jointly led by Bayerische Hypo- und Vereinsbank AG, Singapore Branch and Oversea-Chinese Banking Corp. Ltd. Other participating banks are Landesbank Hessen-Th'ringen Girozentrale and Sumitomo Mitsui Banking Corp., Singapore Branch.
The previous credit facility was provided by a syndicate of six banks, including Helaba, HVB, KfW, OCBC, SMBC and The Bank of Tokyo-Mitsubishi UFJ Co. Ltd, Singapore Branch.
“We are very pleased with the successful completion of this $65 million facility, and are particularly encouraged by the broad-based support from our banking partners and their strong confidence in FSL Trust,” said Cheong Chee Tham, senior vice president and chief financial officer of FSLTM, in a statement. “While the market outlook remains challenging amidst tightening credit conditions, a slowing global economy and a looming supply peak in all major shipping sectors, our business and lease portfolio remain stable. We are committed to maximizing distributions to our unit holders and to ensure their sustainability.”
FSL adds to credit line despite uncertain market
