FSL Trust Management Pte. Ltd. (FSLTM), as trustee-manager of First Ship Lease Trust (“FSL Trust” or the “Trust”) refers to the announcement dated 30 June 2012 entitled “FSL Trust Secures Relaxation of Loan Covenants” (the “Announcement”), and is pleased to announce that it has successfully secured an extension of the relaxation of its loan covenants by a further six months.

FSL Trust’s lenders have granted the extension until 31 December 2013 based on the same covenant relaxation terms as described in the Announcement. During this period, the minimum security value-to-loan ratio is reduced to 100% and the debt service coverage ratio is relaxed to equal or greater than 1:1.

Under the conditions for the extension, the shares of all the vessel-owning Special Purpose Companies owned by FSL Trust will be pledged to the lenders. Additionally, the lenders may choose to review the relaxation if a majority of FSLTM’s independent directors or any of its senior management executives resign or are replaced on an involuntary basis.

Tags: FSL Trust Management Pte. Ltd.