Global Ship Lease, Inc. Announces Underwritten Public Offering of $40 Million Class A Common Shares
September 24 2019 - 4:18PM
Global Ship Lease, Inc. (NYSE:GSL) (“Global Ship Lease” or the
“Company”) today announced that it has commenced a $40.0 million
fully underwritten public offering of its Class A common shares,
par value $0.01 per share (‘Common Shares”). The Company also
intends to grant the underwriters a 30-day option to purchase up to
an additional $6.0 million of Common Shares. As part of the
offering, the Company’s executive management has expressed an
interest to purchase $1.225 million in aggregate of Common Shares
at the public offering price.
The Company intends to use net proceeds of the
offering for general corporate purposes, including the acquisition
of containerships or prepayment of debt.
B. Riley FBR, Inc. is acting as the sole
book-running manager in the offering, and we expect that a portion
of the equity offering will be sold to an affiliate of B. Riley
Financial, Inc. (NASDAQ:RILY) (“B. Riley”). Following the
consummation of the offering, B. Riley and its affiliates intend to
retain Common Shares with an aggregate purchase amount of no less
than $15.0 million. The Company has agreed to grant B. Riley the
right to appoint one member to the Company’s Board of Directors,
subject to certain conditions, including retaining a certain
percentage of voting rights of the Company.
The Company’s Common Shares trade on the New
York Stock Exchange under the symbol “GSL.”
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy these securities,
nor shall there be any sale of these securities, in any state or
other jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the
securities laws of any such state or other jurisdiction. A
registration statement relating to these securities, including a
preliminary prospectus, has been filed with the Securities and
Exchange Commission (the “Commission”) but has not yet become
effective. These securities may not be sold nor may offers to buy
be accepted prior to the time the registration statement becomes
effective. A copy of the preliminary prospectus and final
prospectus related to the Offering, when filed with the Commission,
will be available on the Commission’s website located at
www.sec.gov. When available, copies of the prospectus relating to
the Offering may be obtained from the offices of B. Riley FBR, Inc.
at 1300 North 17th Street, Suite 1400, Arlington, VA 22209, by
calling (703) 312-9580 or by emailing
prospectuses@brileyfbr.com.
About Global Ship Lease,
Inc.Global Ship Lease is a leading independent owner of
containerships with a diversified fleet of mid-sized and smaller
containerships. Incorporated in the Marshall Islands, Global Ship
Lease commenced operations in December 2007 with a business of
owning and chartering out containerships under fixed-rate charters
to top tier container liner companies. On November 15, 2018, it
completed a strategic combination with Poseidon Containers.
Global Ship Lease owns 40 ships and has
contracted to purchase a further ship, ranging from 2,207 to 11,040
TEU, of which nine are fuel efficient new-design wide beam, with a
total capacity of 224,162 TEU and an average age, weighted by TEU
capacity, of 11.9 years as at June 30, 2019.
The average remaining term of the Company’s
charters at June 30, 2019, including subsequent new charters,
options to extend which are under the Company’s control, and
assuming the mid-point of the redelivery period, was 2.9 years on a
TEU-weighted basis. Contracted future revenue on this basis was
$835.4 million. Contracted future revenue was $916.4 million,
including options to extend which are under charterers’ control and
assuming the latest redelivery date, over a TEU-weighted average
remaining term of 3.3 years.
Forward-Looking StatementsThis
press release contains forward-looking statements. Forward-looking
statements provide the Company’s current expectations or forecasts
of future events. Forward-looking statements include statements
about the Company’s expectations, beliefs, plans, objectives,
intentions, assumptions and other statements that are not
historical facts. Words or phrases such as “anticipate,” “believe,”
“continue,” “estimate,” “expect,” “intend,” “may,” “ongoing,”
“plan,” “potential,” “predict,” “project,” “will” or similar words
or phrases, or the negatives of those words or phrases, may
identify forward-looking statements, but the absence of these words
does not necessarily mean that a statement is not forward-looking.
These forward-looking statements are based on assumptions that may
be incorrect, and the Company cannot assure you that the events or
expectations included in these forward-looking statements will come
to pass. Actual results could differ materially from those
expressed or implied by the forward-looking statements as a result
of various factors, including the factors described in “Risk
Factors” in the Company’s Annual Report on Form 20-F and the
factors and risks the Company describes in subsequent reports filed
from time to time with the U.S. Securities and Exchange Commission.
Accordingly, you should not unduly rely on these forward-looking
statements, which speak only as of the date of this press release.
The Company undertakes no obligation to publicly revise any
forward-looking statement to reflect circumstances or events after
the date of this press release or to reflect the occurrence of
unanticipated events.
Investor and Media Contact:The
IGB GroupBryan Degnan646-673-9701
or
Leon Berman212-477-8438
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