First Ship Lease Trust has entered a deal to acquire the vessel Anuket Amber, an around 9,600 DWT oil/chemical tanker for US$5.0 million and to bareboat charter the vessel to James Fisher Everard Ltd. for eight years, the trust said in a filing to SGX Thursday.
“In a challenging shipping investment environment, we are very pleased to have secured this accretive transaction with James Fisher Everard, who have been a long-time customer of FSL Trust. The transaction further strengthens the strong relationship between FSL Trust and James
Fisher Everard, after we had already agreed to renew the charters for five other vessels with James Fisher Everard earlier this year,” Roger Woods, CEO of the trust’s manager, said in the statement.
“Whilst the vessel does not feature the most advanced fuel technologies, the long-term charter of eight years provides secure long-term cash flows to the Trust and creates value for the unitholders,” Woods added.
The vessel is expected to generate an aggregate adjusted earnings before interest, tax, depreciation and amortisation (ebitda) of US$8 million over the charter period, the filing said.
The deal is expected to be funded with cash and cash equivalents, while the trust is also considering raising debt finance, the filing said.
Vessel delivery is expected between September and November, FSL Trust said.
James Fisher Everard Ltd. obligations under the charter are guaranteed by London-listed James Fisher and Sons PLC, which provides specialist services to the marine, oil and gas and other high assurance industries globally, the filing said.
The Anuket Amber, built in 2008, will be renamed Pelican Fisher, the filing said.
FSL Trust’s portfolio includes 11 vessels, with seven chartered to international shipping companies on fixed-rate period charters and four are employed in pools or the spot market.