London - May 08, 2023
The vessels are scheduled for phased delivery during the second and third quarters of 2023, at which point the vessels will be renamed GSL Alexandra, GSL Sofia, GSL Lydia, and GSL Effie. The Company expects to pay for the ships with a combination of cash on hand and senior secured debt. The floating interest rate exposure of the senior secured debt will be covered under the Company's existing interest rate caps of 0.75% through the fourth quarter of 2026.
"We are pleased to announce the acquisition of these four high-specification, enhanced-efficiency vessels, which both provide GSL with immediate, contracted cash flow from a top-tier counterparty and further increase our fleet's presence in the in-demand Post-Panamax fleet segment," said George Youroukos, Executive Chairman of Global Ship Lease. "The transaction offers strong economics, combining predictable contracted cashflows with low residual value risk, consistent with our prior transactions. Additionally, it demonstrates the through-cycle value of our strong balance sheet, deep industry relationships, and disciplined, returns-focused acquisition strategy."
About Global Ship Lease
Global Ship Lease is a leading independent owner of containerships with a diversified fleet of mid-sized and smaller containerships. Incorporated in the Marshall Islands, Global Ship Lease commenced operations in December 2007 with a business of owning and chartering out containerships under fixed-rate charters to top tier container liner companies. It was listed on the New York Stock Exchange in August 2008.
Prior to this transaction, Global Ship Lease owned 64 containerships, ranging from 2,207 to 11,040 TEU, with an aggregate capacity of 341,230 TEU.
Adjusted to include all charters agreed, up to March 1, 2023, the average remaining term of the Company's charters as at December 31, 2022, to the mid-point of redelivery, including options under the Company's control and other than if a redelivery notice has been received, was 2.7 years on a TEU-weighted basis. Contracted revenue on the same basis was $2.09 billion. Contracted revenue was $2.50 billion, including options under charterers' control and with latest redelivery date, representing a weighted average remaining term of 3.5 years.
Global Ship Lease press release