Global Ship pushes out offer to buy back $20 million 9 7/8% notes

By Wendy Van Sickle

Columbus, Ohio, Nov. 25 – Global Ship Lease, Inc. announced an extension to 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 offer will now expire at 5 p.m. ET on Dec. 6, pushed back from 5 p.m. ET on Nov. 25.

The company is offering to purchase the notes at 102 plus accrued interest to but excluding the purchase date.

As of Nov. 25, $17,277,000 of notes had been tendered under the offer.

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. The company said it expected to have debt under its term loan facility as of Nov. 15.

If the total amount tendered exceeds the offer cap, the notes will be accepted for purchase on a pro rata basis.

Tenders may be withdrawn at any time on or prior to the expiration date.

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 will be 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.

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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