Singapore-based FSL Trust has secured a USD 25 million bridging loan to partially finance the construction of its two 114,000 dwt LR2 product tankers.
Signed on February 7, 2019, the loan was agreed with the company’s controlling unitholder, FSL Holdings. It is a short-term loan which would to help fund the company’s newbuildings and for working capital purposes.
The parties informed that the bridging loan would be available for a period of 6 months. The borrowers made an initial draw down on the loan in the amount of USD 10 million.
The loan bears interest at LIBOR plus 4.0% per annum to be paid in 12-month intervals.
The financing is related to the shipbuilding contracts signed between FSL Trust’s subsidiaries, FSL-28 and FSL-29, and China’s shipbuilder COSCO Shipping Heavy Industry in December 2018 for the construction of Tier III tankers for USD 97.6 million.