Changes to Global Ship Lease's $20m debt buyback have been greenlighted with respect to shareholder dividends and future company control.
The New York-listed boxship player received majority bondholder consent for total debt of $340m to pay annual shareholder dividends equal to half of next year's net profit.
The original indenture, offered in November to pay back 9.875% secured notes due 2022 since October 2017, had set future dividends based on financial performance starting in 2020.
Noteholders also acknowledge through the amendment that GSL's $780m merger with Poseidon Containers and affiliate K&T Marine would not change control by GSL.
“Having completed this consent solicitation and our strategic combination with Poseidon Containers last month, we are excited to enter 2019 as a stronger, more agile company with reduced total loan-to-value and a fleet of 38 containerships which is, on average, younger and better specified," chief executive Ian Webber said.
He said the deal and GSL's security of five-year charters on six ships has upped the company's charter-attached net asset value to over $500m, translating to $2.75 per share.
"This positive momentum and our improved financial and competitive platform position GSL to take full advantage of the supportive long-term market fundamentals for the benefit of all stakeholders,” he said.
Per the indenture, GSL will pay $7.50 per $1,000 in debt to each holder who had notes as of 13 December and approved the amendment by yesterday. Payment is set for tomorrow.
