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Global Ship Lease accepts tenders for $17.28 million of 9 7/8% notes
By Sarah Lizee
Olympia, Wash., Dec. 9 – Global Ship Lease, Inc. announced the results of its annual mandatory cash tender offer to purchase up to $20 million of its outstanding 9 7/8% first-priority secured notes due 2022.
The principal amount of notes tendered by the expiration time and accepted for purchase was $17,277,000, according to a press release.
The offer expired at 5 p.m. ET on Dec. 6, pushed back from 5 p.m. ET on Nov. 25.
The company offered to purchase the notes at 102 plus accrued interest to but excluding the purchase date. The total purchase price including accrued interest payable on the settlement date, Dec. 10, will be about $17.7 million.
As announced on Oct. 25, this annual mandatory offer is being made under terms in the indenture governing the notes that require the company to offer to purchase notes, to the extent debt under the company’s term loan remains outstanding, up to an amount equal to $20 million, within 30 days following Nov. 15 of each year.
If the total amount tendered exceeded the offer cap, the notes would have been accepted for purchase on a pro rata basis.
Tenders may no longer be withdrawn.
To the extent that the principal amount of notes tendered is less than the tender cap, by an amount that is at least $500,000, the company is required to pay debt under the term loan to ensure that the aggregate principal amount of notes repurchased and term loan repaid will be at least equal to $40 million. The company intends to repay an additional amount of about $2.7 million on the term loan.
Global Bondholder Services Corp. (866 807-2200 for banks and brokers or 212 430-3774) is the depositary agent.
Global Ship Lease is a containership charter owner based in London.
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