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FSL Trust Selling Older Crude Tanker

FSL Trust Management Pte., the trustee-manager of First Ship Lease Trust, has launched the sale of the crude oil tanker FSL Shanghai.

The South Korean, 2007-built 115,000 dwt crude oil tanker, which is deployed under Teekay’s Revenue Sharing Agreement, is being sold to an undisclosed third party.

The company said the disposal was scheduled to take place before the end of March 2020.

The value of the sale was not revealed. However, based on the valuation from VesselsValue, the crude oil tanker is estimated to be worth USD 24 million.

The trustee-manager added that the proceeds from the sale would be utilized for partial repayment of the trust’s outstanding bank debt and the remaining funds will be kept for general corporate purposes.

The announcement comes on the heels of the completion of the disposal of two more product tankers.

Namely, the company wrapped up the sale of two LR2 product tankers FSL Perth and FSL Piraeus, launched back in November 2019.

FSL Perth and FSL Piraeus are 109,672 dwt ships, built in 2006. They were two of the largest product tankers in the trust’s fleet, and their sale is part of the trust’s fleet renewal program.

After the partial repayment of the trust’s outstanding bank debt and all fees and expenses related to the disposal, the remainder of which an estimate of USD 14.8 million is planned to be utilized towards the newbuilding acquisition.

To remind, the trust inked shipbuilding contracts with COSCO Shipping Heavy Industry (Yangzhou) to build two 114,000 dwt scrubber fitted Tier III LR2 product tankers for a consideration of USD 97.6 million. The ships are slated for delivery in 2020 and 2021 respectively.