Global Ship Lease Embarks On USD 360 Mn Notes Offering

Global Ship Lease, a containership charter owner incorporated in the Marshall Islands, has launched an offering of first priority secured notes due 2022 in an aggregate principal amount of USD 360 million.

The company intends to use the proceeds from the offering, together with borrowings under a new super senior secured term loan facility, to refinance its existing first priority secured notes due 2019 and repay all outstanding borrowings.

As at September 30, 2017, the company’s cash stood at USD 65.6 million, and its gross debt was USD 401.1 million.

For the third quarter of this year, GSL’s fleet generated operating revenues from fixed-rate time charters of USD 41.2 million, breaking even when compared to corresponding last year’s figures.

There has been a modest reduction in revenue from amendments to the charters on Marie Delmas and Kumasi agreed in August 2016, offset by lower offhire.

Operating revenue for the first nine months of 2017 reached USD 121.1 million, down by USD 4 million on operating revenues for the same period in 2016.

The company managed to return to the black posting a net income of USD 8.9 million for the quarter, a major rebound when compared to a net loss of USD 23.7 million from the same period a year ago.

Net income for the nine months ended September 30, 2017 was USD 22.5 million, also up from a net loss of USD 13.1 million in Q3, 2016 after the USD 29.4 million non-cash impairment charge of USD 29.4 million related to the Marie Delmas and Kumasi.

GSL owns 18 vessels with a total capacity of 82,312 TEU, currently fixed on time charters, 15 of which are with CMA CGM.

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