LONDON, January 08, 2021 (GLOBE NEWSWIRE) – Global Ship Lease, Inc. (NYSE: GSL) (the âCompanyâ) today announced that it has entered into a new senior secured loan facility of $ 236.2 million. dollars (the âNew Facilityâ) with Hayfin Capital Management, LLP (âHayfinâ). Global Ship Lease intends to use the proceeds of the New Facility, together with available cash, to fully repay the Company’s outstanding 9.875% Senior Secured Notes due 2022 (the â2022 Notesâ). .
The New Facility matures in January 2026 and bears interest at LIBOR + 7.00%, against a coupon of 9.875% on the 2022 Bonds. The expected amortization under the new facility is approximately $ 26 million per year, a reduction from amortization of $ 35 million per year under the 2022 Notes. In addition, amortization will be at par under the New Facility, rather than at 102 under the 2022 Bonds. The redemption of the 2022 Notes will trigger, in accordance with the Indenture, the conversion of the Series C preferred shares held by the affiliates of Kelso & Company, into approximately 13 million common shares, bringing the number outstanding to approximately 30. , 7 million; the underlying ownership and economy remain unchanged.
This press release does not constitute a redemption notice of the 2022 Bonds, which will be issued pursuant to the terms of the indenture governing the 2022 Bonds.
George Youroukos, Executive Chairman of Global Ship Lease, said: âAgainst the backdrop of the most solid fundamentals of the container shipping industry in many years, and having secured a number of charters at very low rates. attractive, we are delighted to be able to refinance our 2022 Notes while expanding our relationship with Hayfin. The refinancing reflects the extent to which we have significantly strengthened the financial position of Global Ship Lease, the size and quality of the fleet and the outlook for the future, and marks the completion of another of our long-term strategic milestones . With less restrictive covenants, this refinancing will allow us to develop the business more fully and return part of GSL’s cash flows to shareholders. Global Ship Lease has never been in a better position to take advantage of the full range of exciting and accretive opportunities to maximize shareholder value as the primary owner of high quality and in demand container ships.
Andreas Povlsen, Head of Maritime at Hayfin, commented: âHayfin is delighted to continue its strong relationship with GSL’s management team and shareholders through this historic refinancing of the 2022 Bonds. GSL’s next stage of development shows what is possible in a short period of time when the borrower and lender have a high level of trust and a long-term relationship. “
About Global Ship Lease
Global Ship Lease is one of the leading independent container ship owners with a diverse fleet of medium and small size container ships. Incorporated in the Marshall Islands, Global Ship Lease began operations in December 2007 with the ownership and charter business of container ships under fixed rate charters to leading container shipping companies. On November 15, 2018, it completed a strategic merger with Poseidon Containers.
Global Ship Lease owns 43 container ships, ranging from 2,207 to 11,040 TEU, with a total capacity of 245,280 TEU and an average age, weighted by TEU capacity, of 13.4 years as of September 30, 2020. 25 vessels are Post-Panamax, nine of which are energy efficient new design wide beams.
Adjusted to include all agreed charters and vessels acquired or transferred, up to November 12, 2020, the average remaining term of the Company’s charters as of September 30, 2020, up to the midpoint of return, including options under the control of the Company, has been 2.3 years on a TEU weighted basis. Contractual revenue on the same basis was $ 688.9 million. Contractual revenue was $ 764.9 million, including options under the control of the charterers and with the last return date, which represents a weighted average remaining term of 2.6 years.
This press release contains forward-looking statements. Forward-looking statements provide the Company’s current expectations or forecasts regarding future events. Forward-looking statements include statements about the Company’s expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Words or expressions such as “anticipate”, “believe”, “continue”, “estimate”, “expect”, “intend”, “can”, “in progress”, “plan”, ” potential â,â foresee â,â âprojectâ, âwillâ or similar words or expressions, or the negative aspects of such words or expressions, may identify forward-looking statements, but the absence of these words does not necessarily mean that ‘a statement is not forward-looking. These forward-looking statements are based on assumptions which may be incorrect, and the Company cannot assure you that the events or expectations included in these forward-looking statements will materialize. Actual results could differ materially from those expressed or implied by forward-looking statements due to various factors, including the factors described under âRisk Factorsâ in the Company’s annual report on Form 20-F and factors and risks described by the Company. in subsequent reports filed from time to time with the United States Securities and Exchange Commission. Therefore, you should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company assumes no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to reflect the occurrence of unforeseen events.
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