Global Ship Lease announced that its indirect wholly-owned subsidiary, Knausen Holding LLC, priced on June 1, 2022, an offering of $350 million aggregate principal amount of its 5.69% Senior Secured Notes due 2027 in a private placement to a limited number of accredited investors.
The interest rate on the Notes was determined based on the 3.2 year Interpolated US Treasury Yield (ICUR3.2) plus a spread of 2.85%. The Company intends to use the net proceeds from the private placement for the repayment of the remaining outstanding balance on its $236.2 million Senior Secured Loan Facility which bears interest at LIBOR plus a margin of 7.00%, and the remainder for general corporate purposes, which may include the repayment of other outstanding consolidated indebtedness of the Company. The issuance and sale of the Notes is expected to close on June 15, 2022, subject to customary closing conditions. Goldman Sachs & Co. LLC acted as Sole Structuring Agent and Lead Placement Agent.
The Notes will be senior obligations of the Issuer, secured by first priority mortgages on 20 identified vessels owned by subsidiaries of the Issuer and certain other associated assets and contract rights, as well as share pledges over the Subsidiary Guarantors. In addition, the Notes will be fully and unconditionally guaranteed by GSL.
The offer and sale of the Notes was made solely in a private placement exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the Notes or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.