Global Ship Lease buys 2 ships for $154 million

By Associated Press
September 16, 2008 | Comments (0)

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Global Ship Lease Inc. said on Tuesday that it is buying two new ships for $77 million each, for delivery by the end of 2010.

The Marshall Islands-incorporated lessor of container ships said it is buying the ships from German interests. The vessels are being built at Jiangsu New Yangzi Shipbuilding. They will be chartered to Zim Integrated Shipping Services Ltd. for seven to eight years for $28,000 per vessel per day.

The additions, plus five other vessels contracted for delivery by the third quarter of 2009, will more than double Global Ship Lease's capacity.

The company began operations in December and currently owns 12 vessels.

It is financing the purchase with borrowings under its $800 million credit facility or proceeds from the exercise of outstanding public warrants.

Global Ship Lease shares fell 12 cents to $6.80 in morning trading.

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