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-Thingen 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.