Global Ship Lease, Inc. (NYSE: GSL)(NYSE: GSL.U)(NYSE: GSL.WS), a
containership charter owner, announced today that it has taken
delivery of the CMA CGM Berlioz, a 2001-built 6,627 TEU container
vessel, as planned. Including the CMA CGM Berlioz, Global Ship
Lease now operates a fleet of 17 vessels totaling 66,297 TEU, all
on fixed rate long-term time charters, with a weighted average age
of 5.5 years.
The CMA CGM Berlioz is on a non-cancellable, 12-year time
charter to CMA CGM, the world's third largest container shipping
company. The purchase was funded by cash and drawings under the
Company's amended credit facility.
Ian Webber, Chief Executive Officer of Global Ship Lease,
commented, "We are pleased to complete the accretive purchase of
the CMA CGM Berlioz following our agreement to amend Global Ship
Lease's credit facility. This vessel, which is locked away on a
12-year time charter at a favorable rate, further expands our total
contracted revenue stream to approximately $1.6 billion. Consistent
with the successful execution of our time charter strategy, our
entire 17-vessel operating fleet is secured on long-term contracts
with an average remaining duration of 9.4 years with no charter
renewals until the end of 2012."
About Global Ship Lease
Global Ship Lease is a containership charter owner. Incorporated
in the Marshall Islands, Global Ship Lease commenced operations in
December 2007 with a business of owning and chartering out
containerships under long-term, fixed rate charters to world class
container liner companies.
Global Ship Lease currently owns 17 vessels and has contracts in
place to purchase two newbuildings from German interests for
approximately $77 million each that are scheduled to be delivered
in the fourth quarter of 2010. Once the contracted vessels have
been delivered by the end of 2010, Global Ship Lease will have a 19
vessel fleet with total capacity of 74,797 TEU and a weighted
average age at that time of 6.1 years and an average remaining
charter term of approximately eight years. All of the vessels,
including those contracted for future delivery, are fixed on
long-term charters.
Safe Harbor Statement
This communication contains forward-looking statements.
Forward-looking statements provide Global Ship Lease's current
expectations or forecasts of future events. Forward-looking
statements include statements about Global Ship Lease'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
Global Ship Lease cannot assure you that these projections 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.
The risks and uncertainties include, but are not limited to:
- future operating or financial results;
- expectations regarding the strength of the future growth of
the container shipping industry, including the rate of annual
demand and supply growth;
- future payments of dividends and the availability of cash for
payment of dividends;
- Global Ship Lease's expectations relating to dividend payments
and forecasts of its ability to make such payments including the
impact of constraints under its credit facility;
- future acquisitions, business strategy and expected capital
spending;
- operating expenses, availability of crew, number of off-hire
days, drydocking and survey requirements and insurance costs;
- general market conditions and shipping industry trends,
including charter rates and factors affecting supply and
demand;
- the financial condition of CMA CGM, our charterer and sole
source of operating revenue, and its ability to pay charterhire in
accordance with the charters;
- Global Ship Lease's ability to meet financial covenants and
repay its credit facility;
- assumptions regarding interest rates and inflation;
- changes in the rate of growth of global and various regional
economies;
- risks incidental to vessel operation, including piracy,
discharge of pollutants and vessel accidents and damage including
total or constructive loss;
- Global Ship Lease's financial condition and liquidity,
including its ability to obtain additional waivers which might be
necessary under the existing credit facility or obtain additional
financing to fund capital expenditures, contracted and yet to be
contracted vessel acquisitions including the two newbuildings to be
purchased from German interests in the fourth quarter 2010 and
other general corporate activities;
- estimated future capital expenditures needed to preserve its
capital base;
- Global Ship Lease's expectations about the availability of
vessels to purchase, the time that it may take to construct new
vessels, or the useful lives of its vessels;
- Global Ship Lease's continued ability to enter into or re-new
long-term, fixed-rate charters;
- the continued performance of existing long-term, fixed-rate
charters;
- Global Ship Lease's ability to capitalize on its management
team's and board of directors' relationships and reputations in the
containership industry to its advantage;
- changes in governmental and classification societies' rules
and regulations or actions taken by regulatory authorities;
- expectations about the availability of insurance on
commercially reasonable terms;
- unanticipated changes in laws and regulations including
taxation; and
- potential liability from future litigation.
Forward-looking statements are subject to known and unknown
risks and uncertainties and are based on potentially inaccurate
assumptions that could cause actual results to differ materially
from those expected or implied by the forward-looking statements.
Global Ship Lease's actual results could differ materially from
those anticipated in forward-looking statements for many reasons
specifically as described in Global Ship Lease's filings with the
SEC. Accordingly, you should not unduly rely on these
forward-looking statements, which speak only as of the date of this
communication. Global Ship Lease undertakes no obligation to
publicly revise any forward-looking statement to reflect
circumstances or events after the date of this communication or to
reflect the occurrence of unanticipated events. You should,
however, review the factors and risks Global Ship Lease describes
in the reports it will file from time to time with the SEC after
the date of this communication.
Contacts: The IGB Group Investor and Media Contact: Michael
Cimini 212-477-8261
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