Shares & Derivatives
First Ship Lease Trust – Acquisition of 3 Container Ships for US$210 Million
By Musicwhiz  •  May 15, 2008
By: musicwhiz This evening, FSL Trust surprised me by announcing the acquisition of three (3) container ships from Yang Ming Marine Transport Corporation, a listed Taiwan-based shipping company and the 16th largest container liner company in the world. After all, it was less than a month ago on April 21, 2008 when FSLT announced that it had acquired 2 crude oil tankers from Geden Shipping (a Turkey-based company) for US$140 million. I was not expecting another acquisition so quickly, to be frank. With this most recent acquisition, FSLT has fulfilled its target of US$300 million of acquisitions for FY 2008, with just 5 months into FY 2008. In fact, the acquired vessels make up a total of US$350 million, which means FSLT needs to draw down on its remaining US$200 million credit facility AND arrange with its lenders to finance the remaining US$50 million. In the press release, it was mentioned that FSLT Management are trying to increase the second credit line to about US$265 million in order to acquire all 3 vessels. The first 2 have been acquired on a 12-year lease and will be delivered by end-May 2008 and end-June 2008. For the third vessel, financing and documentation has yet to be completed and assuming FSLT can complete it soon, the vessel will be delivered by end-Oct 2008. Read more...
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By Musicwhiz
Musicwhiz who is in his 30s is educated in accounting and works in the investment line (but not in a bank, financial institution, brokerage or fund house). He has a have a full-time job and investing is his side-line as well as passion. Musicwhiz is a value investor and his technique is derived from the teachings of Warren Buffett, Benjamin Graham and Phil Fisher. He incorporate all aspects of their investing style, and modify his value investing style to the Singapore market.

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