First Ship Lease Trust Gains Time

FSL Trust secures 12 months relaxation of two loan covenants, suspends distribution during that period

First Ship Lease Trust ("FSL Trust") is a Singapore business trust that provides lease financing solutions to the international maritime industry. FSL Trust currently owns a diversified portfolio of 25 vessels with an average age of 6.5 years. FSL Trust derives stable long-term cashflow primarily through leasing its vessels on long-term bareboat charter basis to international shipping companies. FSL

The relaxation of covenants would be in effect for 12 months until end-June 2013 (the “Relaxation Period”). 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.

The relaxation of the covenants cushions the Trust from the economic uncertainties and depressed vessel valuations expected over the next 12 months.”