Global Ship Lease (GSL) has attained hundreds of millions of dollars in new debt, essentially resetting its capital framework.
The Ian Webber-led boxship owner has scored a new syndicated $268m senior secured credit facility comprised of two tranches with several lenders, including Credit Agricole Corporate and Investment Bank and ABN AMRO Bank.
CIT Bank, Hellenic Bank Public Company and Siemens Financial Services are also providing new capital.
GSL expects to draw down a first tranche of $230m to repay five senior loans maturing in December 2020 and April 2021 that will clear debt on three 2000-built 6,000-teu ships.
A second $38m helping will go toward refinancing a 41st ship on the way to May 2020.
Final maturity is slated for September 2024, with borrowing interest at Libor plus a margin of 3% and mortisation set at $5.2m per quarter.
The new debt also allows GSL to extend maturity on a $38.5m junior loan by one year to September 2024, consistent with the new loan's maturity date.
“By successfully executing this refinancing, we are delivering upon our stated goals of reducing our cost of debt, significantly extending maturities of most of our 2020 debt until September 2024, and enhancing our financial flexibility by releasing collateral," chief executive Ian Webber said.
"While an important step in its own right, this refinancing also provides us with long-term certainty for further enhancements to our capital structure.”
