London-based containership owner Global Ship Lease has announced the completion of a previously announced stock-for-stock merger with Greek owner George Youroukous’ Poseidon Containers Holdings.
Additionally, the two companies refinanced $228.8m of Poseidon Containers’ secured bank debt, resulting in a debt reduction of $48.2m.
The closing of the merger creates a company with an asset base of more than $1.3bn, which Global Ship Lease believes will allow it to capitalise on favorable market fundamentals in the mid-sized and smaller containership segments. The combined company will have a fleet of 38 vessels with a total capacity of 198,793 teu.
“The completion of this transformational merger marks an important milestone in the evolution of Global Ship Lease. This transaction provides us with an attractive portfolio of assets, greatly enhanced financial and strategic flexibility, and preferential access to a highly capable, integrated platform. In addition, the closing of Poseidon Containers’ refinancing prior to the closing of this transaction further reduces our pro forma leverage and adds significant net asset value beyond what was contemplated at the time of our original announcement,” said Ian Webber, chief executive officer of Global Ship Lease.
“With a modern, 38-vessel fleet of mid-sized and smaller containerships, we are in a strong position to provide leading liner companies with greater scale and vessel diversity to best meet their exacting needs,” added George Youroukos, executive chairman of Global Ship Lease.
