PST – BT

PST takes delivery of its biggest vessel so far

PACIFIC Shipping Trust (PST) yesterday took delivery of its biggest vessel to date – the 4,250-TEU (twenty-foot equivalent unit) CSAV Laja, increasing its slot capacity by 24 per cent to 21,714 TEUs.

It also announced that subscription for its preferential offering to raise about US$92.3 million begins today.

The move is aimed at positioning it for yield-accretive acquisitions.

The 11th vessel begins its five-year time charter to Compania Sud Americana de Vapores SA today following PST’s acquisition of the vessel from Pacific International Lines unit Tranpac Holdings Inc, Panama, which at the same time raises its total indicative asset value to US$435 million.

‘Apart from the increased revenue, the entry of this newbuilding is significant because it further diversifies PST’s vessel sizes and charterers. CSAV is one of the oldest shipping companies in the world and the largest in Latin America and we look forward to increasing our portfolio of long-term charters to such reputable industry players,’ said Alvin Cheng, CEO of PST Management Pte Ltd, the trustee-manager.

In November, PST is expected to take delivery of its 12th vessel, bringing total slot capacity to 25,964 TEUs, with a total indicative asset value of US$510 million.

Mr Cheng added: ‘We have started to see the correction of vessel prices, which we had earlier anticipated – this will provide us with possible opportunities to improve our returns by seeking out yield-accretive acquisitions at the right price. This is in line with our diligently managed growth plans for PST and we aim to continue generating attractive returns to unitholders.’

PST’s preferential offering will strengthen its capital structure and provide it with an increased borrowing capacity, thus enhancing PST’s financial flexibility to pursue medium-term yield-accretive growth opportunities, Mr Cheng said.

Singapore-registered unitholders will be able to subscribe for their entitlements from today to Sept 24.

The offer is on the basis of three new units at 36.5 US cents each for every four existing units held.

‘We look forward to the participation from each and every Singapore-registered unitholder of PST as the preferential offering will lower our debt levels and create room to raise new investment funding to react swiftly to acquisition opportunities when they arise,’ said Mr Cheng.

PST shares closed half a US cent down at 35.5 US cents yesterday.