By Paul A. Harris
Portland, Ore., March 11 - Global Ship Lease Inc. priced an upsized $420 million issue of 10% five-year first-priority secured notes (B3/B) at 98.50 to yield 10.392% on Tuesday, according to an informed source.
The deal was upsized from $400 million.
The coupon and reoffer price both came on top of price talk.
Timing on the transaction was moved slightly ahead; when the deal kicked off the timeline had it expected as Wednesday business.
Citigroup Global Markets was the bookrunner.
Proceeds will be used to refinance debt and terminate existing interest rate swaps. Additional proceeds resulting from the $20 million upsizing of the deal will be used to put cash on the balance sheet.
Global Ship Lease is a containership charter owner based in London and incorporated in the Marshall Islands.
| Issuer: | Global Ship Lease Inc.
|
| Face amount: | $420 million, increased from $400 million
|
| Proceeds: | $414 million
|
| Maturity: | April 1, 2019
|
| Securities: | First-priority secured notes
|
| Bookrunner: | Citigroup Global Markets
|
| Coupon: | 10%
|
| Price: | 98.50
|
| Yield: | 10.392%
|
| First call: | April 1, 2016 at 105
|
| Equity clawback: | 35% at 110 until April 1, 2016
|
| Investor put: | 101% upon change of control
|
| Trade date: | March 11
|
| Settlement date: | March 19
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 10% coupon at 98.5
|
| Marketing: | Roadshow
|
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