Global Ship Lease Closes Poseidon Containers Deal

Marshall Islands-based Global Ship Lease (GSL) announced that it has completed the proposed merger deal with Greece's Poseidon Containers.

According to a release from GSL, the combined company will have a fleet of 38 vessels with a total capacity of 198,793 TEU, and, as of September 30, 2018, an average fleet age weighted by TEU of 10.7 years, and with the recently announced new charters, contracted revenue of approximately $720 million.  

"The closing of the merger creates a market leader with an asset base of more than $1.3 billion, which the Company believes will allow it to capitalize on favorable market fundamentals in the mid-sized and smaller containership segments," it said.

GSL also says Poseidon has refinanced $228.8 million of its secured bank debt that is collateralized by three new eco-design, wide-beam 9,115 TEU vessels, achieving a $48.2 million debt reduction for no consideration.

Ian Webber, Chief Executive Officer of Global Ship Lease, said:  “The completion of this transformational merger marks an important milestone in the evolution of Global Ship Lease. This transaction provides us with an attractive portfolio of assets, greatly enhanced financial and strategic flexibility, and preferential access to a highly capable, integrated platform."

"In addition, the closing of Poseidon Containers’ refinancing prior to the closing of this transaction further reduces our pro forma leverage and adds significant net asset value beyond what was contemplated at the time of our original announcement.  The additional equity value created through the merger transaction, including the refinancing and the new charters, results in a total net asset value per share increase of 52%, to $2.58.”

George Youroukos, Executive Chairman of Global Ship Lease, added: “With a modern, 38-vessel fleet of mid-sized and smaller containerships, we are in a strong position to provide leading liner companies with greater scale and vessel diversity to best meet their exacting needs."

Prior to closing the merger, Poseidon Containers opportunistically refinanced $228.8 million of its secured bank debt that is collateralized by three new eco-design, wide-beam 9,115 TEU vessels. The refinancing achieved a 21% debt reduction of $48.2 million for no consideration. The new secured credit facility is for $180.5 million and matures in June 2022.