Global Ship Lease: Rises on purchase agreement for 12 container ships

Global Ship Lease

08/06/2021 22:12

** Container ship owner's shares  GSL.N  up 7.5% at $18.06
in extended trading
    ** Co agrees to purchase 12 container ships from Borealis
Finance LLC for an aggregate purchase price of $233.9 mln
 urn:newsml:reuters.com:*:nGNX9qV262
    ** With the additions, GSL's fleet will comprise 62
container ships with a total capacity of 322,770 TEU (unit used
to measure cargo capacity) 
    ** The 12 vessels are scheduled for delivery during the
third quarter of 2021
    ** GSL expects to fund the purchase with cash on hand, new
bank debt, and issuance of $35 mln of its existing 8% Senior
Unsecured Notes to sellers
    ** The new ships are expected to contribute about $60.5 mln
of adjusted EBITDA in the first 12 months, co says
    ** Up to Tuesday's close, stock had risen 43.15% YTD

 (Reporting by Sahil Shaw in Bengaluru)
 ((sahil.shaw@thomsonreuters.com))