First Ship Lease Trust

[ZZF]

Not to sound bias

Prime Tanker is a company managing 1 MR, 25 LR1, 1 LR2, 1 Suezmax and 6 gas carriers. Most of the ships are of a larger capacity and longer range than that of FSL

FSL is managing about 19 ships of which 16 vessels have similarity to that of Prime Tanker's (2 Afra, 2 LR2 & 3 MR).

There is a lot of synergy and i may not be surprised if Prime Tanker uses FSL as a vehicle to unload its assets and earn mgmt fee for managing the pool of assets. Injecting assets into FSL with minimal leverage may also mean an improvement in FSL's balance sheet.

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Injecting assets? Maybe. But at what cost to other shareholders? 
Anyway, the most important thing is still to refinance and hope the shipping rates recover towards the 2H of 2018, if what they have guided comes true. 

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