Global Ship Lease Announces Pricing of $350 Million of Senior Secured Notes due 2027
June 02 2022 - 9:10AM
Global Ship Lease, Inc. (NYSE:GSL) (the “Company” or “GSL”)
announced today that its indirect wholly-owned subsidiary, Knausen
Holding LLC (the “Issuer”), priced on June 1, 2022, an offering of
$350 million aggregate principal amount of its 5.69% Senior Secured
Notes due 2027 (the “Notes”) in a private placement to a limited
number of accredited investors. The interest rate on the Notes was
determined based on the 3.2 year Interpolated US Treasury Yield
(ICUR3.2) plus a spread of 2.85%. The Company intends to use the
net proceeds from the private placement for the repayment of the
remaining outstanding balance on its $236.2 million Senior Secured
Loan Facility which bears interest at LIBOR plus a margin of 7.00%,
and the remainder for general corporate purposes, which may include
the repayment of other outstanding consolidated indebtedness of the
Company. The issuance and sale of the Notes is expected to close on
June 15, 2022, subject to customary closing conditions. Goldman
Sachs & Co. LLC acted as Sole Structuring Agent and Lead
Placement Agent.
The Notes will be senior obligations of the
Issuer, secured by first priority mortgages on 20 identified
vessels owned by subsidiaries of the Issuer (the “Subsidiary
Guarantors”) and certain other associated assets and contract
rights, as well as share pledges over the Subsidiary Guarantors. In
addition, the Notes will be fully and unconditionally guaranteed by
GSL.
The offer and sale of the Notes was made solely
in a private placement exempt from registration pursuant to Section
4(a)(2) of the Securities Act of 1933, as amended (the “Securities
Act”). The Notes have not been registered under the Securities Act
or any state securities laws and may not be offered or sold in the
United States absent registration or an applicable exemption from
the registration requirements of the Securities Act and applicable
state laws. This press release shall not constitute an offer to
sell or a solicitation of an offer to purchase the Notes or any
other securities, and shall not constitute an offer, solicitation
or sale in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful.
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 Degnan646-673-9701
or
Leon Berman212-477-8438
Global Ship Lease Inc.
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