FSL – BT

31% opt for new units in place of cash: FSL Trust

FSL Trust Management Pte Ltd (FSLTM), the trustee-manager of First Ship Lease Trust (FSL Trust), yesterday said its distribution reinvestment scheme (DRS) has received stronger than expected support from unitholders. It also affirmed its distribution forecast for the current quarter.

Unitholders holding 155,540,770 units or 30.9 per cent of the total number of issued FSL Trust units elected to receive their distributions in the form of new units in lieu of 2.45 US cents per unit in cash. Accordingly, FSLTM has issued 15.6 million new units and the units have been credited into the CDP securities account of these unitholders on May 29, 2009.

FSL Trust’s sponsor FSLTM and the respective board directors also opted for new units in respect for all or part of their unitholdings.

FSLTM chief executive Philip Clausius said: ‘The participation level in the DRS was much stronger than we expected and we are certainly very pleased with the outcome. That so many unitholders chose to receive their distribution in new units is a testament of their confidence in the stability and long-term prospects of FSL Trust.’

With the scheme, a total of US$3.8 million has been retained and this will go mainly to voluntary debt repayment.

FSLTM reaffirmed its distribution per unit (DPU) guidance of 2.45 US cents for the quarter ending June 30, 2009. This represents about 75 per cent of the projected distributable cash flow. The residual cash from the distributable cash flow, together with the US$3.8 million retained under the DRS, will be applied towards a voluntary loan prepayment of US$8 million on the next interest reset date.

All of FSL Trust’s eight lessees have been making full and prompt advance payment of their monthly lease rentals, including those for June 2009. ‘FSL Trust has no committed capital expenditure and no immediate need for substantial capital raising to support its current lease portfolio,’ it said.