New York-listed Global Ship Lease, a containership owner leasing ships to container shipping companies, has contracted to purchase four high-reefer 9,115-teu containerships with an average age of 8.5 years for an aggregate purchase price of $274m.
With these additions, the company’s fleet will comprise 72 vessels with a total capacity of 413,183 teu.
The Athens-based shipowner said that the newly acquired vessels are currently on time charters to a liner operator, with varied median firm durations extending for an average of 1.7 years, or up to an average of 5.0 years if all charterer’s options are exercised.
Assuming all options are exercised, the charters are expected to generate aggregate Ebitda of up to approximately $184m.
The vessels are scheduled for phased delivery between December 2024 and January 2025. The company expects to pay for the ships with a combination of cash-on-hand and debt.
Global Ship Lease noted that it has received in-principle commitments for ten-year financings to be priced at SOFR + 2.50%, and benefiting from the balance of the company’s outstanding 0.64% SOFR caps.
Including these financings, the company’s weighted average debt maturity would be extended to 5.3 years.
The financings are subject to the negotiation and execution of definitive documentation, Global Ship Lease said, and the satisfaction of certain customary closing conditions.
“In line with our clear goal of renewing the GSL fleet on a disciplined and selective basis, we are pleased to announce the acquisition of these four modern, high-reefer, ECO post-panamax vessels on very compelling terms,” said George Youroukos, executive chairman of Global Ship Lease.
Youroukos noted that, as sisters to three high-performing vessels already in the GSL fleet, “the newly acquired vessels are tried and tested high-earners and will carry forward the economic runway of the cash cows in the company’s existing fleet.
“We were able to capitalize on this excellent opportunity because of our balance sheet strength, flexibility, and ability to move fast, while also maintaining our usual discipline and strict investment criteria.
“Buying these ships for an en bloc price of $274 million, against an aggregate open-market charter-free value of close to $400 million, allows us to de-risk this deal right out of the gate.
“We are very pleased to have established this new relationship with the seller, and to have secured access to great assets, which are allowing us to put in place 10-year financings while also forming a blueprint to utilize if similarly compelling opportunities should emerge in the future.”
The company expects that the financings will contain financial and other covenants that are similar to those contained in its other financing agreements.
