Global Ship closes Q2 with $72.1 million cash, $459 million total debt

By Lisa Kerner

Charlotte, N.C., July 28 – Global Ship Lease, Inc. ended its second quarter on June 30 with cash of $72.1 million and total debt of $459 million, according to chief financial officer Susan Cook.

This compares to cash of $24.5 million and total debt of about $361 million at Dec. 31.

Global Ship held a conference call to discuss its second-quarter results on Monday.

Debt and interest

Through March 19, the company’s borrowings was comprised of amounts outstanding under its credit facility, which carried interest at Libor plus a margin, most recently 375 basis points, and $45 million of preferred shares, which carries interest at Libor plus a margin of 200 bps, according to the earnings news release.

The outstanding borrowings under the credit facility, totaling $366.4 million, were repaid from the proceeds of $420 million of 10% first-priority secured notes due 2019 on March 19. Also on March 19, the $277 million nominal amount of interest rate derivatives outstanding were terminated for a final payment of $19.3 million, the company said.

Global Ship hedged its interest rate exposure by entering into derivatives that swapped floating-rate debt for fixed-rate debt.

Interest expense for the quarter was $12 million, including the commitment fee on the company’s new and undrawn $40 million revolving credit facility, Cook said.

For the prior-year period, interest expense was $4.8 million on borrowings averaging $410.9 million under the Global Ship’s credit facility and the $45 million of preferred shares.

Financial highlights

Global Ship reported a net loss for the quarter of $2.3 million, compared to net income of $10.1 million for the year-ago period.

Cash flow for the second quarter was $17.5 million.

The company generated revenue of $33.5 million and adjusted EBITDA of $19.8 million for the quarter.

“We remain confident in the long-term, underlying fundamentals of the industry and believe the company is well positioned for growth,” said chief executive officer Ian Webber. “Drawing on our strong financial flexibility, we continue to actively pursue accretive opportunities to expand our fleet and future earnings power while enhancing shareholder value.”

Global Ship Lease is a containership charter owner based in London and incorporated in the Marshall Islands.

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