Tuesday, June 6, 2023
HomeContainersGSL Provides Update on Recent Chartering, Refinancing Activity

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

GSL Provides Update on Recent Chartering, Refinancing Activity

Global Ship Lease provided an update on its recent chartering and refinancing activity.

The Company has agreed a new three-year charter with a leading liner operator for the 2,200 TEU, 2002-built Kumasi. The charter is scheduled to commence following the vessel’s regulatory drydock in January 2022, at a rate of $38,000 per day.

The Company has also agreed a new senior secured debt facility to refinance its outstanding $219.4 million senior secured debt facility, which will extend the maturity date from September 2024 to December 2026, amend certain covenants in the Company’s favor, further strengthen the Company’s ability to sustain dividends throughout market cycles, and release three vessels from the facility’s collateral basket (the “Unencumbered Vessels”), at an unchanged rate of LIBOR + 3.00%. The Unencumbered Vessels were subsequently used as collateral for a new $60 million syndicated senior secured debt facility, priced at LIBOR + 2.75%, which the Company intends to utilize to fully repay its 10.00% junior debt facility, and for general corporate purposes.

The Company has also hedged its exposure to a potential rising interest rate environment by putting in place a USD LIBOR cap of 0.75% through fourth quarter 2026 (the “Interest Rate Cap”), on $484 million of its floating rate debt, which reduces over time and represents approximately half of the Company’s outstanding floating rate debt.

George Youroukos, Executive Chairman of Global Ship Lease, commented, “As the numerous multi-year forward charters that we have agreed in recent quarters increasingly come into effect and substantially strengthen our long-term cashflows, we have remained active in ensuring that we crystallize the long-term benefits of having a high-quality fleet during this extraordinarily strong market. We have had continual success in improving our balance sheet by reducing our cost of debt, hedging much of our floating rate interest exposure, increasing the diversification of our lenders to a total number of 18, and improving both terms and flexibility in ways that will support our competitiveness, our earnings, and our ability to reliably pay a dividend throughout market cycles. We have also remained active in chartering, securing long-term employment for our only near-term expiry, the Kumasi, and exploring opportunities for forward contracts for vessels coming off charter later this year. The highly attractive rate that we have secured for the 20-year-old Kumasi represents an increase of more than 300% from the vessel’s prior rate and is approximately 20% higher than multi-year charters agreed for two of Kumasi’s sister vessels during the fourth quarter of 2021. We believe that this is clear evidence that the market for mid-sized and smaller containerships has maintained significant positive momentum on the back of highly supportive and durable fundamentals despite what is traditionally the low season for the charter market.”

Related Posts

Video

Finance & Economy
Shipping News
Ports

Globus Q1 results hit by weak dry bulk market

Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter ended March 31, 2023. Revenue $8.6 million...

BW LPG appoints new CFO

BW LPG announced that it has appointed Ms Samantha Xu as Chief Financial Officer (CFO), effective 1 September 2023. Ms Xu has over 20 years...

Frontline Posts Highest First Quarter Results Since 2008

Frontline plc reported unaudited results for the three months ended March 31, 2023: Highlights Highest first quarter profit since 2008 of $199.6 million, or $0.90 per...

Diana Shipping posts slightly lower Q1 profit; takes out $123m in loans

Diana Shipping reported net income of $22.7 million and net income attributed to common stockholders of $21.3 million for the first quarter of 2023....

CMA CGM Profit Eases as Container Transport Demand Wanes

CMA CGM expects its profit to ease further for the rest of the year after a first-quarter decline, as an uncertain economy and influx...

Taiwan Shipping Firms Set to Hand Out Bumper Bonuses Again

Taiwanese shipping companies are handing out bumper mid-year bonuses despite a slump in global...

Baltic index hits over 3-month low amid lower coal imports

The Baltic exchange’s main sea freight index extended losses for the 15th session straight...

Baltic index falls for the month as vessel demand wanes

The Baltic exchange’s main sea freight index recorded its first monthly decline in four...

North Korea missile tests endanger shipping, UN maritime agency told

North Korean missile tests are endangering the safety of commercial shipping in busy sea...

Singapore Clamps Down on Tankers as Dark Fleet Grows

Singapore’s detentions of oil and chemicals tankers have surged since early last year, highlighting...

US West Coast port workers shut terminals in showdown over pay

The employers of more than 22,000 dock workers at U.S. West Coast seaports on Friday said the union representing those laborers “is staging concerted...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...