Global Ship Lease buys boxship quartet for $148 million

London-based containership owner Global Ship Lease (GSL) has decided to purchase four Panamax containerships on multi-year charters.

As disclosed, the ultra-high refeer boxships, which have an average age of around 11 years, are scheduled for delivery in the third quarter of 2021.

The company expects to fund the purchase price with cash on hand and senior secured debt.

Each ship has existing capacity for 1,200 refrigerated containers – double the average for ships in the 5,000-7,000 TEU size segment – and electrical power available for more than 2,000 refrigerated containers; so, these are top-tier ships offering clear upside potential following the initial charters,” George Youroukos, Executive Chairman of Global Ship Lease, noted.

To put things in perspective, adding these four ships to our existing high-reefer ECO 6,900 TEU ships means that Global Ship Lease will control over a quarter of the global high-reefer fleet up to 7,000 TEU capable of carrying 1,200 or more refrigerated containers.

Upon delivery, the vessels will be chartered to an unnamed liner operator for a firm period of three years each, with a charterer’s option for a period of an additional three years. 

GSL expects that during this three-year period the ships will generate aggregate Adjusted EBITDA of approximately $124.4 million. If the options are exercised, the vessels are expected to generate approximately $42.2 million of additional Adjusted EBITDA.

With the newest addition, GSL will own a fleet of 66 containerships.

Earlier in the month, the company sealed a deal to buy twelve secondhand containerships from Borealis Finance LLC.

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