FSL Trust Secures Relaxation of Loan Covenants

MarineLink.com
Monday, June 10, 2013

FSL Trust Management Pte. Ltd. (FSLTM), as trustee-manager of First Ship Lease Trust wishes to announce that it has secured a temporary relaxation of two of its loan covenants from its lenders. The relaxation of covenants would be in effect for 12 months until end-June 2013.


In view of the economic weakness in Europe and further deterioration in the shipping market, FSLTM requested for and was granted a temporary relaxation of two loan covenants from its lenders to address potential breaches over the next 12 months. The two covenants that the lenders have agreed to relax are the security value-to-loan (VTL) ratio and the debt service coverage (DSC) ratio.


During the relaxation period, the minimum VTL ratio, which is the minimum charter-free fair market value of FSL Trust’s vessel portfolio over the outstanding loan balance, will be reduced from 125% to 100% while the DSC ratio will be relaxed from at least 1.1:1 to at least 1:1.


During the relaxation period, FSL Trust is restricted from paying any distributions to unitholders. The Trust will also incur an additional margin of 2% per annum on the shortfall amount, which is the difference between the outstanding loan balance and the theoretical loan balance assuming VTL ratio is 125%.


Mr. Cheong Chee Tham, Senior Vice President and Chief Financial Officer of FSLTM said, “Our lenders’ continued support during these challenging times affirms their confidence in FSL Trust and reflects the strong relationship we have with our lenders. The relaxation of the covenants cushions the trust from the economic uncertainties and depressed vessel valuations expected over the next 12 months.”

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

US Navy: Future USS John Finn (DDG 113) Launched

The future USS John Finn (DDG 113) was launched at the Huntington Ingalls Industries (HII) shipyard March 28.  During launch the drydock was flooded allowing the

WISTA AGM to Address Emerging Shipping Challenges

WISTA USA (Women’s International Shipping and Trading Association) is putting the final touches on a high-profile speaker line-up that will headline its upcoming

WOW at USMMA

The United States Merchant Marine Academy Hosts 7th Annual Women on the Water Conference. Last week, The United States Merchant Marine Academy (USMMA) in conjunction with the U.

Finance

Sea Star Continues Puerto Rico Investments

Sea Star Line, LLC has entered an agreement to on-hire another barge to add to its current service package for shipments from Jacksonville to Puerto Rico.   The

Rand Logistics Announces Debt Refinancing

Rand Logistics, Inc. announced today that it has closed a $170.0 million revolving loan facility which refinanced approximately $102.0 million of the company's

Baltic Sea Freight Index Edges Higher

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, edged higher on Monday as rates rose for vessels across all segments.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1759 sec (6 req/sec)