Global Ship Lease Provides Further Update on $800 Million Credit Facility
July 31, 2009
LONDON, ENGLAND--(Marketwire - July 31, 2009) - Global Ship Lease, Inc. (NYSE:GSL)(NYSE:GSL.U)(NYSE:GSL.WS), a containership charter owner, announced today that the Company has agreed with its lenders to extend its waiver for loan-to-value tests until August 31, 2009 pending conclusion of an amendment to the credit facility as a result of declines in charter free market values of containerships. The Company was initially required to submit vessel valuations on April 30, 2009 and previously received a waiver from loan-to-value tests until July 31, 2009. In connection with the agreement, Global Ship Lease will not pay dividends to common shareholders through August 31, 2009 and intends to review its dividend policy at the end of the waiver period. The facility will bear an interest margin of 2.75% through August 31, 2009.
Ian Webber, Chief Executive Officer of Global Ship Lease, stated, "We continue to diligently work with our bank group to finalize an amendment to our $800 million credit facility and are in the latter stages of the process. During a challenging time for the industry, all of our vessels remain secured on long-term contracts with charterhire up to date."
About Global Ship Lease
Global Ship Lease currently owns 16 vessels and has contracted to purchase an additional three vessels. The Company has a contract in place to acquire by September 30, 2009 an additional vessel for $82 million from CMA CGM, contingent on financing. The Company also has contracts in place to purchase two newbuildings from German interests for approximately $77 million each which are scheduled to be delivered in the fourth quarter of 2010.
Once all of the contracted vessels have been delivered by the end of 2010, Global Ship Lease will have a 19 vessel fleet with total capacity of 74,797 TEU and a weighted average age at that time of 6.1 years and an average remaining charter term of approximately eight years. All of the vessels including those contracted for future delivery are fixed on long-term charters.
Global Ship Lease