Global Ship Lease Announces Credit Rating and Outlook Upgrades
June 20 2023 - 8:30AM
Global Ship Lease, Inc. (NYSE: GSL) (the “Company”) announced today
several recent updates by three leading credit rating agencies. The
Company’s Corporate Family Rating has been upgraded to Ba3 from B1,
with a stable outlook, by Moody’s Investor Service (“Moody’s”). In
addition, S&P Global Ratings (“S&P”) revised the Company’s
outlook to positive and affirmed its long-term issuer credit rating
at ‘BB’, and the Kroll Bond Rating Agency (“KBRA") affirmed both
the Company’s BB corporate rating with a stable outlook, as well as
the BBB/stable investment grade rating and outlook for GSL’s $350
Million 5.69% Senior Secured Notes due July 15, 2027, structured
and placed by Goldman Sachs in June 2022.
In announcing the ratings and outlook updates,
the agencies cited the Company’s low debt-to-EBITDA ratio,
significant revenue visibility due to multi-year time charter
agreements secured at attractive rates in 2021 and 2022, and
anticipated significant cash flow generation from charters already
fixed through virtually all of 2023 and approximately 80% of 2024.
The agencies also recognized GSL’s steady progress in improving
cost of debt and hedges against rising interest rates and our debt
amortization profile that will drive continued debt reduction. In
addition, the agencies noted the Company’s quarterly dividends,
share buybacks and opportunistic vessel acquisitions. Additional
reasons cited included the Company’s scale and niche focus on
middle-aged, medium-sized and smaller containerships, with
value-added components such as reefer capacity, that benefit from
lower anticipated vessel supply growth than is the case with larger
containerships.
George Youroukos, Executive Chairman of Global
Ship Lease, commented, “These latest credit and outlook upgrades,
as well as the affirmation of the investment grade rating on our
$350 Million 5.69% Senior Secured Notes, reflect broad recognition
of our discipline and performance over time, which have enabled us
to transform our balance sheet while also building a portfolio of
attractive multi-year charter coverage with strong counterparties.
Against the backdrop of an ongoing normalization in both freight
and charter markets, we have extended our forward visibility on
revenues and have remained cashflow generative, which in turn has
enabled further balance sheet improvements, opportunistic
acquisitions and shareholder returns through both dividends and
share buybacks. As asset values in the containership sector also
normalize from recent peaks, we are well-positioned to make
selective acquisitions when the right opportunities arise and will
continue with our dynamic and disciplined allocation of capital to
manage risks and build shareholder value through the cycle.”
Additional information regarding Global Ship
Lease’s credit ratings can be found in the press release dated June
8, 2023 on the Moody's website at moodys.com, the press release
dated June 13, 2023 on the S&P website at spglobal.com, and the
press release dated June 16, 2023 on the KBRA website at
kbra.com.
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. It was listed on the New York Stock Exchange
in August 2008.
As at May 9, 2023, Global Ship Lease owned 64
containerships and had contracted to purchase a further four ships,
ranging from 2,207 to 11,040 TEU, with an aggregate capacity (when
fully delivered) of 375,406 TEU. 36 ships are wide-beam
Post-Panamax.
Adjusted to include all charters agreed up to May 9, 2023,
and the four ships to be acquired, the average remaining term of
the Company’s charters as at March 31, 2023, to the mid-point
of redelivery, including options under the Company’s control and
other than if a redelivery notice has been received, was 2.5 years
on a TEU-weighted basis. Contracted revenue on the same basis
was $2.11 billion. Contracted revenue was $2.54 billion,
including options under charterers’ control and with latest
redelivery date, representing a weighted average remaining term of
3.3 years.
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 or update 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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