Finally, the Right Opportunity Beckons – FSL Enters Into Sale-leaseback with Torm

Yesterday, First Ship Lease Trust (“FSL”) announced that it had entered into an agreement to acquire the M/T Torm Margrethe, a 109,672 DWT product tanker built in China in 2006. The vessel will then be immediately bareboat chartered back to the seller, a wholly owned subsidiary of Torm A/S for a period of 7 years with delivery expected this month. Recourse to Torm, the bareboat is structured with a purchase option at maturity, an early buy-out on or after the 5th anniversary and three 1-year options. As one might expect the purchase price values the charter. Clarkson values a five-year old at $41 million, implying a $5 million premium in this instance.

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