Global Ship Lease Inc. would be purchasing 12 container-ships from Borealis Finance LLC. Each of which, has an average capacity of approximately 3,000 TEU and has a median age of 11 years, for an a total purchase price of $233.9 million.
The container-ships are chartered by the leading liner operators. The remaining charter durations are of 3 to 25 months. After the addition of the 12 new container-ships, the company’s fleet will comprise 62 containerships with a total capacity of approximately 322,770 TEU. This would potentially make Global Ship Lease Inc. the 8th largest non-operating ship-owner of containerships by TEU capacity.
The vessels would be delivered by the third quarter of 2021. In the deal, Clarksons Platou Securities AS awas the sole advisor to the company, and was represented by Seward & Kissel LLP, as a legal counsel.
In a press release, George Youroukos, Executive Chairman of Global Ship Lease Inc. commented, “We are pleased to announce the agreement to acquire these 12 ships, which are cash flow positive from the first day, without any additional issuance of common shares. The vessels have an appealing combination of existing medium-term charter cover and upside potential in the relative near term from charter renewals in one of the strongest ever containership charter markets, in which both charter rates and durations are significantly above the levels of recent years. These additions to the GSL fleet will increase our exposure to the workhorse feeder and handy size segments, which are currently commanding record-high charter rates stemming from strong demand and effectively full employment, and discussions are already underway to secure additional forward cover on terms reflecting these superior market conditions. We have also further strengthened our financial position recently by completing the refinancing of our debt facility previously falling due mid-2022, thereby eliminating all material debt maturities before late 2024. Looking forward, we remain highly optimistic about both the prospects for mid-sized and smaller containerships and GSL’s ability to continue executing an accretive, charter-attached growth strategy that improves our earnings and forward visibility, while minimizing residual value risk and giving additional long-term support to our dividend-paying capabilities.”
Source: Press Release