Global Ship Lease Announces Closing of the Full Redemption of its 9.875% First Priority Secured Notes Due 2022

Rhea-AI Summary

Global Ship Lease (NYSE: GSL) has completed the redemption of $233.4 million of its 9.875% First Priority Secured Notes due 2022, at a price of 102.469% plus accrued interest, using funds from a $236.2 million senior secured loan with Hayfin Capital Management and cash reserves. Following this, the company issued approximately 12.96 million Class A common shares to Kelso upon the conversion of its Series C Preferred Shares. The outstanding Class A common shares total 30.7 million post-transaction.

Positive

• Successful redemption of $233.4 million in notes enhances financial stability.
• Issuance of 12.96 million Class A common shares strengthens equity base.

Negative

• Redemption price exceeded par value at 102.469%, indicating higher costs.
• Potential dilution of existing shareholders due to new share issuance.

LONDON, Jan. 21, 2021 (GLOBE NEWSWIRE) -- Global Ship Lease, Inc. (NYSE: GSL) (the “Company”) today announced that it has closed on its previously announced full redemption of all of the then-outstanding $233,436,000 aggregate principal amount of its 9.875% First Priority Secured Notes due 2022 (the “Notes”) at a redemption price equal to 102.469% of the principal amount thereof (the “Redemption Price”) plus accrued and unpaid interest to, but not including, the redemption date of January 20, 2021. The Company paid the Redemption Price using funds from the drawdown of its previously-announced $236.2 million senior secured loan facility with Hayfin Capital Management, LLP, along with cash on hand. All Notes have been cancelled and the Notes will no longer trade on The International Stock Exchange.

Upon the closing of the redemption, the Company issued an aggregate of 12,955,188 Class A common shares to KEP VI (Newco Marine) Ltd. and KIA VIII (Newco Marine) Ltd. (together, “Kelso”), both affiliates of Kelso & Company, a U.S. private equity firm, upon Kelso’s conversion of its 250,000 Series C Preferred Shares, representing all such shares then outstanding, in accordance with the terms of the Certificate of Designation governing the Series C Preferred Shares. Following the conversion of the Series C Preferred Shares, the Company has 30,696,196 Class A common shares outstanding.

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. On November 15, 2018, it completed a strategic combination with Poseidon Containers.

Global Ship Lease owns 43 containerships, 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 13.7 years as at December 31, 2020. 25 ships are Post-Panamax, of which nine are fuel-efficient new-design wide-beam.

Adjusted to include all charters agreed, and ships acquired or divested, up to January 20, 2021, the average remaining term of the Company’s charters at September 30, 2020, to the mid-point of redelivery, including options under the Company’s control, was 2.4 years on a TEU-weighted basis. Contracted revenue on the same basis was $710.0 million. Contracted revenue was $786.7 million, including options under charterers’ control and with latest redelivery date, representing a weighted average remaining term of 2.7 years.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements provide the Company’s current expectations or forecasts of 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 phrases such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “will” or similar words or phrases, or the negatives of those words or phrases, 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 that may be incorrect, and the Company cannot assure you that the events or expectations included in these forward-looking statements will come to pass. Actual results could differ materially from those expressed or implied by the forward-looking statements as a result of various factors, including the factors described in “Risk Factors” in the Company’s Annual Report on Form 20-F and the factors and risks the Company describes in subsequent reports filed from time to time with the U.S. Securities and Exchange Commission. Accordingly, you should not unduly rely on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes 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 unanticipated events.

Investor and Media Contact:

The IGB Group
Bryan Degnan
646-673-9701
or
Leon Berman
212-477-8438

FAQ

What was announced in the Global Ship Lease press release on January 21, 2021?

Global Ship Lease announced the redemption of its 9.875% First Priority Secured Notes and the issuance of Class A common shares to Kelso.

How much was the redemption price for Global Ship Lease's notes?

The redemption price was 102.469% of the principal amount plus accrued interest.

How many shares are outstanding after the Global Ship Lease share issuance?

After the issuance, there are 30,696,196 Class A common shares outstanding.

What was the total principal amount of the redeemed notes by Global Ship Lease?

$233,436,000 was the total principal amount of the redeemed notes.

What funding sources did Global Ship Lease use for the redemption?

Global Ship Lease used a $236.2 million senior secured loan and cash on hand for the redemption.