Global Ship Lease, Inc., a containership charter owner, has agreed to acquire three 2004-built, 7,849 TEU containerships for an aggregate purchase price of $48.5 million, the company said in its release. Upon delivery during the second quarter, the first vessel will commence a five-year charter with Maersk Line. The two other vessels are expected to be delivered during the third quarter and will commence three-year charters with Maersk Line, with two consecutive one-year extensions at the charterer’s option. The three vessels are expected to generate Adjusted EBITDA of approximately $32 million in aggregate for the median firm period, and a total of $47 million if all options are exercised. With these additions, the Company’s fleet will comprise 41 vessels with a total capacity of 224,162 TEU.
The Company has secured new senior secured bank debt to finance a portion of the purchase price. The new debt is on market terms with a maturity of late 2024.
About Global Ship Lease
Global Ship Lease is a leading independent owner of containerships with a diversified fleet of mid-sized and smaller containerships. Incorporated in the Marshall Islands, Global Ship Lease commenced operations in December 2007 with a business of owning and chartering out containerships under fixed-rate charters to top tier container liner companies. On November 15, 2018, it completed a strategic combination with Poseidon Containers.
Global Ship Lease owns 41 vessels ranging from 2,207 to 11,040 TEU, of which nine are fuel efficient new-design wide beam, with a total capacity of 224,162 TEU and an average age, weighted by TEU capacity, of 11.7 years as at March 31, 2019, including subsequent announcements.
The average remaining term of the charters at March 31, 2019, including subsequent announcements and to the mid-point of redelivery, including options under owners control, was 3.1 years on a TEU-weighted basis. Contracted revenue on the same basis is $886.2 million. Contracted revenue is $975.9 million, including options under charterers control and with latest redelivery date, representing a weighted average remaining term of 3.4 years.