Global Ship Lease reaffirms price talk on $400 million seven-year notes, brings covenant changes

By Paul A. Harris

Portland, Ore., Dec. 18 - Global Ship Lease Inc. moved back timing on its $400 million offering of seven-year first-priority secured notes (expected B3/confirmed B) and reaffirmed the 9½% area yield talk, an informed source said on Wednesday.

Changes were also introduced to the debt incurrence- and restricted payments covenants, as well as to the excess cash flow offer covenant.

Recommitments are due by 10 a.m. ET on Thursday, and the deal is set to price thereafter. The deal had previously been expected to price on Wednesday.

Citigroup Global Markets Inc. is the bookrunner for the Rule 144A and Regulation S offering.

The notes become callable after three years at par plus 50% of the coupon.

The London-based containership charter owner plans to use the proceeds to refinance debt and terminate existing interest rate swaps.

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