Global Ship Lease receives new loan, alleviating debt service

Global Ship Lease Inc. has received a $236.2 million, five-year senior secured loan facility to redeem bonds. Interest is L+700, a Jan. 8 company statement said.

Hayfin Capital Management LLP was the lender.

The container ship lessor plans to use the proceeds from the new facility, along with cash on hand, to redeem in full its 9.875% first-priority secured notes due 2022.

Annual amortization under the new loan falls to $26 million, from $35 million under the 2022 notes. Amortization is at par under the new loan, rather than 102 under the notes due 2022.

Redemption of the 2022 notes will trigger the conversion of Kelso & Co.'s equity stake into about 13 million common shares.

Global Ship Lease placed $360 million of the 9.875% secured notes due 2022 via Citi and Clarksons Platou Securities in October 2017 for a refinancing.