Boxship owner Global Ship Lease (GSL) has agreed to purchase four container vessels for a total price of $274m. The ships will be delivered this month and next.
The high-reefer ships have a 9,115 teu capacity and an average age of 8.5 years, said GSL, and have sister ships already in the GSL fleet. The new quartet come with various charters in place for an average of 1.7 years. The charters, each with a leading liner operator, would have an average remaining duration of 5.0 years if all options were exercised.
“Assuming all options are exercised, the charters are expected to generate aggregate EBITDA of up to approximately $184m”, said GSL.
The company expects to pay for the ships with a mix of cash-on-hand and debt, and revealed it has commitments in principle for 10-year financing deals at the Secured Overnight Financing Rate (SOFR) plus 2.5%, covered by the remainder of SFL’s 0.64% SOFR caps.
“Including these financings, the Company’s weighted average debt maturity would be extended to 5.3 years,” said GSL.
The ships will bring GSL’s fleet to 72 vessels and a total capacity of 413,183 teu, with ships ranging from 2,207 to 11,040 teu.
George Youroukos, executive chairman of GSL, said: “As sisters to three high-performing vessels already in the GSL fleet, the newly acquired vessels are tried and tested high-earners, and will carry forward the economic runway of the cash cows in our existing fleet.
“Buying these ships for an en bloc price of $274m, against an aggregate open-market charter-free value of close to $400m, allows us to de-risk this deal right out of the gate. We are very pleased to have established this new relationship with the seller, and to have secured access to great assets, which are allowing us to put in place 10-year financings while also forming a blueprint to utilise if similarly compelling opportunities should emerge in the future.”
