Global Ship Lease announced that it has agreed to purchase and charter back seven 6,000 TEU Post-Panamax containerships with an average age of approximately 20 years for an aggregate purchase price of $116 million, reports Global News Wire.
EBITDA revenue in millions
The charters are to leading liner operators for a minimum firm period of 36 months each, followed by two one-year extensions at charterer’s option.
The vessels are expected to generate aggregate Adjusted EBITDA of approximately $95 million over the average firm period of 3.1 years, implying a strongly accretive average Purchase Price / Annual Adjusted EBITDA multiple of approximately 4.0x.
If all options are exercised, the vessels are expected to generate approximately $126 million of Adjusted EBITDA. With these additions, the Company’s fleet will comprise 50 vessels with a total capacity of 287,280 TEU.
Phased delivery of vessels
The vessels are scheduled for phased delivery during the second and third quarters of 2021, at which time they will be renamed GSL Arcadia, GSL Dorothea, GSL Maria, GSL Melita, GSL MYNY, GSL Tegea and GSL Violetta.
The Company expects to pay for the ships with approximately $40 million of cash on hand, with the balance provided by bank debt.
During the firm period of the contracted charters, the seven ships are expected to add
- approximately $29 million to annual Adjusted EBITDA, representing an increase of approximately 18% compared to Adjusted EBITDA for the 12 months to September 30, 2020.
- approximately $19 million to annual net income, based on today’s LIBOR, representing an increase of approximately 40% compared to normalized net income for the 12 months to September 30, 2020, and
- approximately $0.53 to annual earnings per share, an increase of approximately 40% compared to Adjusted earnings per share for the 12 months to September 30, 2020.
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Source: Global News Wire
