Global Ship Lease Enters Sale-And-Leaseback Deal with OOCL

NYSE-listed container ship charter owner Global Ship Lease (GSL) has signed a sale-and-leaseback contract with Hong Kong-headquartered Orient Overseas Container Line Limited (OOCL) for the 8,063 TEU OOCL Ningbo.

GSL will pay USD 53.6 million for the 2004-built OOCL Ningbo, which upon its delivery in September 2015 will be immediately time chartered back to OOCL for a period of 36 to 39 months, at charterer’s option, at a gross rate of USD 34,500 per day, for total contracted revenue of between USD 37.7 and USD 40.9 million.

GSL will fund the purchase via cash on hand and a recently-signed USD 35 million credit facility with DVB Bank.

With the delivery of the OOCL Ningbo, the Company’s fleet will comprise 20 vessels with a total capacity of 90,538 TEU.

“In completing this third, highly attractive sale-and-leaseback transaction over the last twelve months, we have once again taken a major step forward in expanding our earnings power and diversifying our charter portfolio,” Ian Webber, Chief Executive Officer of Global Ship Lease, said.

”Including this transaction, we have now increased our run-rate EBITDA by approximately 35% through acquisitions alone. In addition, we benefit from increased earnings from our two vessels operating on short-term contracts in a stronger spot market. Furthermore, our new credit facility, with a first class bank in DVB, marks an important step in lowering our cost of capital.”

Share this article

Follow World Maritime News

In Depth>

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Maritime Reconnaissance and Surveillance Technology

As varied threats in the Mediterranean Sea continue to proliferate, the need to advance…

read more >

2nd GREENTECH IN SHIPPING GLOBAL FORUM

Forum you will find out from the regulators, government bodies and major ports’ representatives what the near…

read more >

7th Annual Arctic Exchange

Every year the Exchange invites delegates from across the globe to come together to listen to key senior management teams…

read more >