FSL – BT

First Ship Lease Trust to raise funds from placement

JUST days after winning some reprieve from its bankers, First Ship Lease Trust (FSLT) is now seeking to raise more funds with a 100 million unit placement exercise.

The placement, to be arranged by CLSA Singapore, will not be underwritten. The issue price per new unit and number of new units to be issued will be determined by CLSA in consultation with the trustee-manager, FSL Trust Management (FSLTM), following a book-building process.

FSLTM said that the issue price will be between 52.5 cents and 57.5 cents unless otherwise agreed between CLSA and FSLTM but provided that it will not be at a discount of more than 20 per cent to the traded volume-weighted average price of 59 cents on the day before the agreement was signed.

The trustee-manager said that assuming that all the 100 million new units are issued at an assumed price of 59 cents each, FLST estimates that it will receive net proceeds of about $57.3 million.

The trust plans to use funds raised for the acquisitions of vessels with leases or of companies holding such vessels, although it has not identified any specific assets to be acquired as yet.

The new units are equivalent to about 19.28 per cent of the existing issued units and about 16.16 per cent of the enlarged issued units, assuming that all the 100 million new units are issued.

To ensure fairness to existing unit holders, FSLT will give a stub distribution, estimated at 1.27 cents, for the period July 1 to the day immediately preceding the date on which the new units will be issued instead of to Sept 30 as originally scheduled. The new units are expected to be issued on Sept 17, said FSLTM, adding that the next distribution following the stub distribution is expected to be for the period from the issue of the new units to Sept 30.