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Global Ship Lease: Major Turnaround, Dividends Ahead

Published Thu, 10 Oct 2019 08:00:00 -0400 on Seeking Alpha

Image Credit: NafsGreen
Thesis: 3 Steps to Recovery & Dividends
We have been following Global Ship Lease (GSL) for years and after maintaining an avoid/bearish posture for years, the company finally became an interesting investment target in late-2018. Following the reverse split in early-2019, the price washed out, and it was time to buy. I believe GSL is an excellent investment over the next 9-12 months based on a three step thesis which culminates in a restoration of significant dividends.
We have already seen one of these steps (refinancing of 2020 debt) completed on 19 September and their recently concluded equity raise paves the way for the advanced refinancing of their high interest secured bonds. They have legacy bonds with a hefty 9.875% interest rate, which are eligible to be called after 15 November 2019. GSL has also secured credit facility amendments which allow them to restore dividends starting in 2020. I expect they will refinance their high interest bonds and then restore dividends by mid-2020.
GSL Refinances their December 2020 Maturities (Complete) GSL Refinances their $340M 2022 Notes (In Progress) GSL Restores Dividends We Profit as GSL Moves Toward Comp Values Company & Stock Overview
Global Ship Lease is a container leasing firm focused primarily on midsize tonnage with medium and long-term charters. Peers in their sector include Seaspan Corp (SSW), Costamare (CMRE), Capital Product Partners (CPLP), Danos Corp (DAC), and Navios... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CAPITAL PRODUCT PARTNERS 10.66   0.0 -8.42 1.26 11.72
COSTAMARE 6.42   23.8 0.27 0.40 6.60
SEASPAN 11.61   5.9 1.97 0.50 4.49
DANAOS 7.90   2.9 2.76 0.00 0.00

CAPITAL PRODUCT PARTNERS - CPLP
CAPITAL PRODUCT PARTNERS - CPLP  


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