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Global Ship Lease, Inc. Message Board

ftfetter 7 posts  |  Last Activity: Jul 23, 2012 4:20 PM Member since: Nov 23, 2011
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  • Wire: Dow Jones News Service (DJN) Date: Jul 23 2012 16:15:13
    PRESS RELEASE: Global Ship Lease Announces New Time Charters for Two Containerships

    Global Ship Lease Announces New Time Charters for Two Containerships
    Maintains Fully Chartered Fleet on Fixed Rate Contracts
    LONDON, July 23, 2012 (GLOBE NEWSWIRE) -- Global Ship Lease, Inc. (NYSE:GSL),
    a containership charter owner, today announced it has signed new time charters
    with CMA CGM for two 4,113 TEU containerships, the 1996-built Ville d'Aquarius
    and the 1997-built Ville d'Orion. The vessels will be chartered for
    approximately eight months at a rate of $9,962 per vessel per day, commencing
    upon expiration of the current time charters on September 20 and 21, 2012,
    Ian Webber, Chief Executive Officer of Global Ship Lease, said, "We are
    pleased to have signed new time charters for these two ships with CMA CGM.
    These agreements are consistent with our strategy of operating our fleet of 17
    vessels on fixed rate contracts in order to continue to generate predictable
    and stable results. With these two new contracts, our fleet continues to be
    fully time chartered until at least May next year with an average remaining
    term of 6.6 years, or 7.9 years weighted by TEU capacity, representing $1.1
    billion of contracted revenue."
    Mr. Webber continued, "During a challenging market, we are pleased to have
    secured ongoing employment for these vessels into the second quarter of 2013.
    This period typically represents the high season for chartering activity and
    enhances the subsequent remarketing prospects for the two vessels. The seamless
    transition from current to new charters with CMA CGM ensures that we will not
    experience any offhire days, incur any costs associated with repositioning
    these vessels or pay any third party brokerage fees."
    The time charters for the Ville d'Aquarius and the Ville d'Orion were
    executed under an agreement entered into with CMA CGM, providing Global Ship
    Lease with the option to obligate CMA CGM to charter the vessels at an
    index-linked rate, with a floor of $8,500 per day. As part of this agreement,
    the Company will accelerate the redemption of 63 Series A Preferred Shares of
    $48,000 each from CMA CGM for $3,024,000. The redemption is to be funded by
    restricted cash, which can only be used for this purpose, since the proceeds
    resulted from the exercise of warrants in 2008. These 63 Preferred Shares were
    originally scheduled for redemption on August 14, 2016.

  • Reply to

    Buyback Spread

    by dendreonpro Jun 18, 2012 9:19 AM
    ftfetter ftfetter Jun 18, 2012 1:46 PM Flag

    While the stock obviously hasn't tanked, it is still highly doubtful JAKK will cancel the buyback (under any scenario). By initiating the tender and setting a price at at least $20/share, the Board has locked themselves in and would be short-sighted to change their position. The purpose of this tender is to send a message to shareholders and potential acquirors (including Oaktree) that the floor value is $20, in addition to deploying a significant chunk of excess cash in a business mgmt/board feels is undervalued.

    This tender offer will be completed. However, the number of shares offered for tender will likely be much higher (so everyone will get less shares accepted) as a result of Oaktree seemingly walking away.

    The language of the Oaktree letter reads as if Jakks didn't want them there to begin with. Being able to negotiate terms of a confidentiality and standstill agreement is pretty straightforward. Either management is dug in or Oaktree wasn't willing to raise its bid to a price viewed as acceptable to Jakks.

  • ftfetter by ftfetter Jun 6, 2012 12:12 PM Flag

    CMA CGM reported revenue growth of 2.6% in Q1 12 (13.4% increase in volume with a 9.5% decrease from freight rates). EBITDA declined slightly due to high fuel prices and increases in freight rates not yet in effect in Q1.

    Encouragingly, freight rates on some lines are now up 3-4x 12/31/11 levels. Fuel costs have also declined (from $721/ton on 3/13/12 to $563/ton on 6/1/12). CMA is also implementing various actions to improve profitability (strategic partnerships with MSC and Maersk on some lines, more slow steaming, renegotiation of some charter rates). They are still in renegotiation with their banks to smooth out principal repayment (expect to freeze about $100mm on principal repayment). Cash stands at $600mm with debt of about $6bn.

    From a chart they presented, they expect positive EBITDA in Q2-Q4 12.

    Overall, charter rates and results appear to be headed in the right direction.

  • Reply to

    CMA CGM results

    by edgetrader2001 Mar 7, 2012 10:22 AM
    ftfetter ftfetter Mar 7, 2012 11:28 AM Flag

    Some conviction from CMA CGM (and its auditors) on the cash flow value of GSL from CMA CGM's 2011 consolidated financial statements:

    "Global Ship Lease owns and charters out 17 vessels under long-term charters, all chartered to CMA CGM. 2 of the vessels have a remaining charter duration of less than 1 year, 15 are time chartered for remaining terms ranging from 5 to 14 years. As at December 31, 2011, the undiscounted time chart payable to Global Ship Lease corresponding to the 17 vessels represents an amount of USD 1,165 million. The carrying amount of the investment in associates which corresponds to the Company’s shares in the net assets of Global Ship Lease of 44.72% is USD 169.9 million. Global Ship Lease is listed on the New York Stock Exchange and had a market capitalization of USD 99.2 million as at December 31, 2011. Based on cash flow projections taking into account the long term nature of the time charters secured by Global Ship Lease, management believes that no impairment charge is required."

  • Reply to

    LTV Test Waived Until Nov 30, 2012

    by cavalatica Nov 30, 2011 8:34 AM
    ftfetter ftfetter Nov 30, 2011 12:45 PM Flag

    I just emailed the IR at CMA CGM and they say it will be released soon (so may still be today). I did not receive the subsequent press release about the earnings press release being delayed to tomorrow (12/1), but edge may be right. Will post if they release today.

  • Reply to

    LTV Test Waived Until Nov 30, 2012

    by cavalatica Nov 30, 2011 8:34 AM
    ftfetter ftfetter Nov 30, 2011 10:27 AM Flag

    CMA CGM results have not been posted yet on the investor site.

  • Hopefully someone actually reads the results and realizes the "solvency" issue of CMA CGM isn't significant. Meanwhile, GSL gets contracted rev, when put in a DCF at even drastic assumptions, is massively undervalued.

    CHANGE OF DATE / CMA CGM - Q3 2011 Financial Statement of Accounts - Conference Call

    Dear All,

    It appears that the date of the 30th of November is not convenient for a large number of Bondholders as a High Yield Conference will take place the same day.

    We will therefore re-schedule CMA CGM Q3 conference call for the next day, December the 1st at the same time (4pm CET / Paris time).

    Q3 2011 financials will be made available on the 30th of November.

    Sorry for inconvenience caused.

    Best regards,

    Serge CORBEL,
    Vice President Corporate Control

3.70+0.02(+0.54%)9:42 AMEDT

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