London-based containership owner Global Ship Lease (GSL) has agreed a new $236.2m secured loan facility with Hayfin Capital Management, which the company will use towards redeeming in full the company’s outstanding 9.875% First Priority Secured Notes due 2022.
The new facility matures in January 2026 and scheduled amortization is approximately $26m annually, a reduction from $35m annually under the notes.
George Youroukos, executive chairman of Global Ship Lease, commented: “Against a backdrop of the strongest container shipping industry fundamentals in many years, and having secured a number of charters at highly attractive rates, we are delighted to be able to proceed with refinancing our 2022 Notes while expanding our relationship with Hayfin. The refinancing reflects the extent to which we have materially strengthened Global Ship Lease’s financial position, fleet size and quality, and future prospects, and marks the fulfilment of yet another of our long-term strategic milestones. With less restrictive covenants, this refinancing will allow us to more fully develop the business and return a portion of GSL cashflows to shareholders. Global Ship Lease has never been in a stronger position to take advantage of the full range of exciting and accretive opportunities to maximize shareholder value as a leading owner of high-quality, in-demand containerships.”
Andreas Povlsen, head of maritime at Hayfin, added: “Hayfin is pleased to continue its strong relationship with the management team and shareholders at GSL through this landmark refinancing of the 2022 Notes. Providing a sizeable one-stop solution to support the next step in GSL’s development shows what is possible in a short timeframe when both borrower and lender have a high level of trust and a long-term relationship focus.”
Global Ship Lease owns 43 boxships, ranging from 2,207 teu to 11,040 teu, with a total capacity of 245,280 teu.