PSL - Ultratech

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The proposed investment consists of a loan to five wholly owned subsidiaries of Precious Shipping Public Company Limited (“PSL” or the “Company”), based on securitization of the cashflows available to PSL under long term charter contracts with Ultratech Cement Limited (“Ultratech”) for five operating ships (four specialized cement carriers and one dry bulk vessel) (the “Project”).. The four specialized, custom built cement carriers of 21,000 Dead Weight Tonnage (“DWT”) each are used to transport cement along the west coast of India and Sri Lanka. The dry bulk carrier of 56,000 DWT is used to transport various dry bulk commodities on international routes as per demand (collectively the five vessels are referred to as “Project Vessels”). Each project vessel is owned and operated under a special purpose company (all five special purpose companies are collectively called Project Companies).  The company currently operates 32 dry bulk ships and four cement carriers with a total capacity of 1.6 million DWT. PSL was established in 1989 and was listed on the Thailand Stock Exchange in 1993. The company’s fleet is relatively young compared to the industry with an average age of 9 years.  The four cement carriers are Apinya Naree (APY), Boonya Naree (BNY), Chanya Naree (CNY) and Danaya Naree (DNY). The fifth vessel is Apiradee Naree (APD), which is the bulk carrier. Three vessels became operational in 2014, and one each in 2012 and 2015. The vessels are managed and crewed in-house by PSL and their subsidiary companies. Three of the cement carriers (APY, BNY and DNY) operate only on the Indian west coast and go to Sri Lanka once in five years for dry-docking. The cement carrier CNY operates on a regular basis the India - Sri Lanka route. The bulk carrier Apiradee Naree operates international routes as per demand.  The project companies or PSL do not own or operate any port facilities used by the vessels. The port and loading/unloading facilities are regularly used by vessels owned by different companies and were not built, upgraded or subject to any specific improvements to accommodate PSL’s vessels, and therefore are not considered associated facilities for the project.