Global Ship Lease to repay $2.7 million under term loan facility

By Sarah Lizee

Olympia, Wash., Dec. 9 – Global Ship Lease, Inc. plans to repay $2.7 million under its term loan facility, according to a press release.

The repayment is being made in connection with the company’s annual mandatory offer under the terms in the indenture governing the company’s 9 7/8% first-priority secured notes due 2022 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.

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, inclusive of an aggregate of $20 million in scheduled principal amortization payments on the term loan.

Accordingly, the company intends to repay about $2.7 million on the term loan.

Global Ship Lease is a containership charter owner based in London.

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