Singapore-based First Ship Lease Trust has moved forward with the disposal of a 2005-built MR product tanker as part of its fleet renewal efforts.
The company has executed a Memorandum of Agreement to sell the 47,496 dwt FSL Hamburg to an unaffiliated third party and has received the initial 10% deposit in escrow.
FSL Trust said that the transaction is expected to be completed before end March 2019, at which time the net proceeds would be utilised for partial repayment of the company’s outstanding bank debt. The remainder, some USD 6.5 million, would be used for instalment payments for the newbuilding acquisition revealed in mid-December 2018.
“In line with the Trust’s ongoing fleet renewal strategy, we are pleased to report this disposal, which will help fund the newbuilding acquisition, will reduce the outstanding bank debt thus improving the Trust’s risk profile while preparing the Trust to take advantage of the expected recovery in the sector,” Roger Woods, Chief Executive Officer of FSLTM, said.