Global Ship Lease Announces New Long-Term Charter Agreements between Poseidon Containers and CMA CGM
November 09 2018 - 8:30AM
Poseidon Containers to charter four 6,927
TEU containerships to CMA CGM for a period of five
years
Global Ship Lease, Inc. (NYSE:GSL), a containership charter
owner, today announced that Poseidon Containers, with which Global
Ship Lease has entered a definitive merger agreement, has agreed
five-year charters with CMA CGM for four of its 6,927 TEU
containerships, Mary, Kristina, Katherine and Alexandra. The
charters will deliver incremental annualized EBITDA of
approximately $11.0 million compared to third quarter 2018
contracted rates. The new charter for Mary commenced
recently, and the remaining three new charters will commence upon
expiry of their existing charters during the first half of 2019.
The new five-year charters are expected to generate total EBITDA of
approximately $135 million over the five-year contract period.
Ian Webber, Chief Executive Officer of Global Ship Lease,
commented, “As we near the closing of our strategic
combination, we are pleased to announce Poseidon Containers’
signing of these long-term charters with leading container liner
company CMA CGM at levels substantially above their prior
contracted rates. Upon closing our transformational
combination with Poseidon Containers, the enhanced long-term
visibility through 2024 from contracted revenue and cashflow
from these charters will strengthen GSL’s balance sheet and
contribute to further deleveraging, which, together with
increased EBITDA, will drive improvements in financial leverage. We
are excited about joining forces with Poseidon Containers; as
illustrated by these new charters, the combination will
significantly increase our scale and ability to capitalize on
favorable fundamentals in the mid-sized and smaller containership
segments.”
About Global Ship Lease
Global Ship Lease is a containership charter owner. Incorporated
in the Marshall Islands, Global Ship Lease commenced operations in
December 2007 with a business of owning and chartering out
containerships under mainly long-term, fixed-rate charters to top
tier container liner companies.
As of September 30, 2018, Global Ship Lease owned 19 vessels
with a total capacity of 85,136 TEU and an average age, weighted by
TEU capacity, of 13.7 years. All 19 vessels are fixed on time
charters, 17 of which are with CMA CGM. The average remaining term
of the charters at September 30, 2018 was 2.1 years or 2.4 years on
a weighted basis.
Safe Harbor Statement
This press release contains forward-looking statements.
Forward-looking statements provide the Company's current
expectations or forecasts of future events. Forward-looking
statements include statements about the Company's expectations,
beliefs, plans, objectives, intentions, assumptions and other
statements that are not historical facts. Words or phrases such as
"anticipate," "believe," "continue," "estimate," "expect,"
"intend," "may," "ongoing," "plan," "potential," "predict,"
"project," "will" or similar words or phrases, or the negatives of
those words or phrases, may identify forward-looking statements,
but the absence of these words does not necessarily mean that a
statement is not forward-looking. These forward-looking statements
are based on assumptions that may be incorrect, and the Company
cannot assure you that the events or expectations included in these
forward-looking statements will come to pass. Actual results could
differ materially from those expressed or implied by the
forward-looking statements as a result of various factors,
including the factors described in "Risk Factors" in the Company's
Annual Report on Form 20-F and the factors and risks the Company
describes in subsequent reports filed from time to time with the
U.S. Securities and Exchange Commission. Accordingly, you should
not unduly rely on these forward-looking statements, which speak
only as of the date of this press release. The Company undertakes
no obligation to publicly revise any forward-looking statement to
reflect circumstances or events after the date of this press
release or to reflect the occurrence of unanticipated events.
Investor and Media Contact:The IGB GroupBryan
Degnan646-673-9701orLeon Berman212-477-8438
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