Global Ship Lease (GSL) has sold $350m in debt to square away a loan coming due in 2026.
The Ian Webber-led owner of 65 containerships has offered the senior secured notes, which carry a 5.69% coupon rate, to a limited number of accredited investors in a private placement.
The London-based company backed the notes with first-priority mortgages on 20 vessels in its fleet and other assets, contract rights and company shares.
New York-listed GSL said it will use the money from the sale of the notes, which will mature in 2027, to pay off the rest of a $236m senior secured loan facility that was signed in January 2021 with Hayfin Capital Management.
GSL used the proceeds from the Hayfin loan, which has an interest rate of Libor plus 7% and will mature in 2026, to buy back its remaining pile of first-priority secured notes that had a 9.875% coupon rate and were due this year.
The shipowner also used the money for general corporate purposes that may include repaying other outstanding consolidated debt.
Goldman Sachs is the sole structuring agent and lead placement agent for the offering, which is set to close on 15 June.
As of 31 March, GSL’s debt stood at $1.08bn, with $792m of that in the form of vessel-secured debt. Another $169m is in the form of sale-and-leaseback financing deals and $118m is unsecured debt on notes maturing in 2024.
All of the company’s ships were encumbered at that time, GSL said.
