Good day, ladies and gentlemen and welcome to the Global Ship Lease Fourth Quarter and Full Year 2013 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) As a reminder, this call maybe recorded. I will now introduce your host for today’s conference, Ian Webber, Chief Executive Officer of Global Ship Lease. You may begin.

Thank you very much. Good morning everybody and thanks for joining us today. I am sorry for the shorter than usual notice for the call. We will come back to the reason for that later on. Hopefully, you have had a chance to have a look at the earnings release that we issued earlier today. And as normal, you have been able to access the slides that accompany the call. Slides 1 and 2 are the normal reminders that today’s call may include forward-looking statements based on current expectations and assumptions and are by their very nature, inherently uncertain and outside the company’s control. Actual results may differ materially from these forward-looking statements due to many factors, including those described in the Safe Harbor section of the slide presentation. We also draw your attention to the Risk Factors section on our Annual Report on the Form 20-F, which was filed with the SEC last April. You can obtain the 20-F on our website or on the SEC’s. All of our statements are qualified by these and other disclosures in our reports filed with the SEC. We don’t undertake any duty to update forward-looking statements. And for reconciliations of non-U.S. GAAP financial measures, to which we will refer during this call, to the most directly comparable measures calculated and presented in accordance with U.S. GAAP, please refer to the earnings release that we issued this morning, which is also available at our website, www.globalshiplease.com. I’d like to start today’s call by reviewing the fourth quarter and the full year 2013 highlights. Then provide an overview of our fleet. I will make some comments on the industry, including our charter, CMA CGM. And then before handing over to Susan for her commentary on our financials, I will touch on our ongoing refinancing…

Thank you, Ian. Please turn to Slide 13 for summary of our financial results for the three months ended December 31, 2013. We generated revenue of $36.1 million during the fourth quarter from a fully-charted fleet of vessels, down $0.1 million from revenue of $36.2 million in the comparative period in 2012. The decline in revenue is due mainly to reduced revenue for two vessels following charter renewals at lower rates since the expiry of the initial charters in September 2012 and offset by lower off-hire with only one unplanned off-hire day in the 2013 quarter. This 99.9% utilization in Q4 2013 compares to 99% in the same period in 2012. Following satisfactory completion of on float inspection on one vessel, there was no drydocking in the fourth quarter of 2013, with only two vessels scheduled to undergo drydocking in 2014 and none in 2015. Our vessel operating expenses were $11.7 million for the three-month period with an average cost per ownership a day of $7,511, up $148 per day or 2% over $7,363 for the comparative period of 2012. The increase is mostly related to repairs and maintenance partially offset by lower crew and lubricating oil costs. Interest expense excluding the effect of interest rate derivatives which do not qualify the hedge accounting for the three months ended December 31, 2013 was $4.5 million on average borrowings under our credit facility of $384.3 million and on the $45 million of preferred shares throughout the period. In the prior year period, interest expense was $5.1 million based on higher average credit facility borrowings of $436.8 million and preferred shares of $45 million. Our derivative hedging instruments gained the realize loss of $2.9 million in the three months ended December 31, 2013, with settlement of swaps in the period as current…

Thanks Susan. Let’s now look at Slide 16 where we briefly summarized the company’s core strengths and reiterated our strategy for creating value for all of our shareholders. First, aside from the two vessels that may redeliver to us in April of this year and which gain account for any 4% of our total revenues. Our fleet is fully contracted through to late 2016, representing committed revenue of approximately $900 million. We have on average remaining term on these charters between 6.5 years to 7.5 years depending on whether you include or exclude the two short-term vessels. Therefore a high degree of visibility on our future cash flows all the while being insulated from near-term charter market volatility. Second, we have $303 million of interest rate swaps rolled off during 2013, which represents approximately $9 million of savings on an annual basis and substantially less drydocking in ‘13 I am looking forward into ‘14 and ‘15 than previously and consequently we should see continued strong cash flow. Thirdly, we took the opportunity to extend our loan-to-value waiver cover through until May 1, 2015. Fourth, we are continuing to apply our robust and steady cash flow through aggressively delver our balance sheet. And we got no exposure to financing or refinancing risk until 2016. So our refinancing is purely opportunistic. Finally, the Board and management remain committed to increasing our financial flexibility in a manner, which would be accretive to our shareholders and would allow us to add a great component to the business also being able to pay the dividend to our common shareholders. We intend to be ready to go to market when the conditions arise. We will owe to reassure you will only pursue such an action if its terms were in the best interest of shareholders. Finding such terms remains our priority. I would like to hand the call back to the operator now, who will explain the Q&A process.

Thank you. (Operator Instructions) Our first question comes from Omar Nokta of Global Hunter Securities. Your line is open. Omar Nokta – Global Hunter Securities: Thank you, good afternoon. I just had a few questions, obviously nice to see the six-month extension on the LTV waiver. Just wanted to get a sense, I know you said on the call and in the press release that there was no apparently no cost, and I just want to confirm is that just – it was a simple extension at absolutely no change in cash sweep level or borrowing cost?

Yes, that’s it. Just December 1, 2014 and May 1, 2015. Omar Nokta – Global Hunter Securities: Okay, that’s not too bad. I guess I wanted to think about why do you think that means or how do you feel about being able to extend that further I know it’s obviously little early, but does that range the convictional that you might be able to extend that further into as we proceed another few months to extend that into 2016?

Well, I think we will think about (indiscernible) we are pleased that we have got over 12 months of protection from today. We need to see what happens to the market, asset values about potential refinancing and all of the rest of it to see what action we need to take down the track. Omar Nokta – Global Hunter Securities: Right. It sounded based on your comments that potential refinancing could be again on the near-term horizon, I know you didn’t specifically say that but bringing your earnings forward it seems to indicate maybe that’s the track you are on. This – getting the six-month extension does that at all change your thinking or how you are going to approach doing another deal especially when you compare it to what you launched in December. Has this extra six months, how has that changed your thinking on approaching the market with another deal?

Not at all frankly. I wouldn’t read too much into the extension of loan-to-value. We saw an opportunity given the refinancing to push the waiver date out and we took that opportunity and we are grateful to the support in our existing lenders. They could say an advantage to us if we work to returns to the high yield market with a reluanch or reactivation of the previous process of having a longer term waiver in our back pocket. So fundamentally it doesn’t change our approach to our balance sheet management there off. Omar Nokta – Global Hunter Securities: Okay. That makes sense. Basically you are still fully intent on sort of doing a recapitalization to some extent that you have in your back pocket this way, but that gives you the flexibility?

Yes, that’s right Omar Nokta – Global Hunter Securities: Okay, thank you. Just one thing I wanted to ask you about the vessel that underwent or is going through repairs you said that day rate is going to $10,000 for a few months, and it’s going to basically continuing operation the entire time, is that the expectation currently?

Yes, absolutely. Just currently it was a hedge rates I should speak is first on the $18,500 a day. The one crane that’s out of action is the largest crane it has the biggest bridge, it services 10 out of the 22 base on the vessel, which is approximately 45% if you do the simple math. So we have agreed a 46% charter hire reduction with it rounding for the period when the vessel is not completely performing as the spec. We set off to several months we are still assessing the repairs that are required if we need to have it manufactured, it doesn’t play very often and outstanding stocks of it then that will take a little while, but it’s always possible that the repairs could take less time. We are just being cautious. Omar Nokta – Global Hunter Securities: Okay. And then just one final one on the two vessels that may return to you in April, as you asses the market you did say that charter rates are generally in line, currently with what it’s currently receiving. Do you see if you will be – if needed to sell the vessels would you be able to sell them for a theoretical market value that’s different than scrap or in another words would you have the ability to sell them for a much better price than just simply scrap if you are forced to do so?

May be, not another significant margin little it will potentially this Panamax type vessels I know as you know in surplus right now we contend as we said on the call and we said previously that the supply demand tension should improve, quite lower over a couple of years as the supply growth is constrained, demand growth for these vessels improves because of our exposure to the midsized and smaller type freight lines. So the sort of things that we will think about in coming to a decision what to do on these vessels is what’s happening in the small charter market. At that time we need to make a decision what proceeds could we (indiscernible) we would sell them, what can we do with those proceeds. But coming back to your question it’s possible to sell and it’s sort of an ongoing concern for a little margin over time. Omar Nokta – Global Hunter Securities: Okay. Alright, well, that’s all for me. Thank you very much Ian.

Thank you

Our next question comes from Chris Snyder of Sidoti. Your line is open. Chris Snyder – Sidoti: Hey, good afternoon guys

Hi Chris. Chris Snyder – Sidoti: My first question was just a follow-up on the ships those are at a service. I didn’t catch the name of the ship, could you just provide me with that?

She is the Julie Delmas. Chris Snyder – Sidoti: Okay. And you said it would be at service for two to three months, could you just kind of give that time which two to three months is the timeframe there?

Well, it could be up to several months, I have just said turning up the level of repairs that are required, but it’s obviously has no financial impact on Q4 total, but there will be reduced revenue in Q1 for sure. And possibly in Q2 depending on how long the crane is out of service that where we felt it is internally right to let you guys know that rather than bring this later on. Chris Snyder – Sidoti: Okay. And then…

The reduced level of hire started on February the 9th, so very recent, part of it is correct. Chris Snyder – Sidoti: Okay. My – I guess next question is kind of on the refinancing. Service is something you guys have given a lot of thought too, but maybe you could just provide some insight on to the rationale of why sell $400 million notes and as you guys proposed. What’s the argument against selling maybe $100 million or $150 million just enough to come into compliance while at the same time benefiting from the low interest rate on the credit facility?

Because fundamentally Chris, we want to eliminate maintenance covenants however which we have no control by and large. We want to remove the risk of loan-to-value from the business going forward otherwise we’ll always have that shattered behind us. As I’m sure you’re aware our high yield is governed by incurrence covenants. So to a large measure we can control our own destiny and we have thought long and hard about part repayments credit facility and exchange but improve terms and becoming compliant etcetera. That would require raising unsecured new money which of itself can be challenging. Chris Snyder – Sidoti: Okay, makes sense. And final question just kind of overall about this Panamax, Panamax containership market. I guess the market hasn’t seen its rates pickup I mean that we have seen in other shipping sectors. Just kind of wanting what your thoughts and the reason for that is and is this part of it cascading and if it is, do you think that that’s kind of run its course already?

Well fundamentally right I mean it picks up because there are too many of these ships on the water at the moment chasing employment. It’s a function of two things. It’s a function of the time of the year, Q4 and Q1 are seasonally weak. This business is not only cyclical, it’s seasonal as I’m sure you know Q4 and Q1 are seasonally weak and idle capacity when there is an excessive tonnage tends to peak in Q1. So there are Panamax vessels and other glasses as well obviously but if your question was on Panamax there are Panamax vessels that are seeking employment that keeps charter rates down. The other reason is the cascade, yes. There have been huge deliveries of big ships and at the top of the pyramid which is displaced tonnage etcetera and it takes time for the cascade to work through. And because there was some acceleration of deliveries of big vessels there hasn’t been enough time in the strong part of the year for the cascade to work through completely. Now we go back to what I said a number of times is that although in the near term that likely continued downward pressure on charter rates and charter rates and asset values and the midterm because of really low levels of supply growth for those – that tonnage and their deployment characteristics we think there should be an improvement. There has been an acceleration of stopping of the vessels in 2013 and in 2014 so far, 14 vessels we understand are Panamax type size have gone to break this in 2014. Chris Snyder – Sidoti: Yes.

That’s a lot. Chris Snyder – Sidoti: Yes. I agree that fundamental certainly point to improving rates over the next few years. That’s it all from me guys. Thanks for the time.

Yes that’s 5% of the Panamax fleet just to put into context 14 vessels in two months. Chris Snyder – Sidoti: Wow, okay.

Thank you. Our next question comes from Mark Suarez of Euro Pacific Capital. Your line is open. Mark Suarez – Euro Pacific Capital: Good morning, Ian.

Hi, Mark. Mark Suarez – Euro Pacific Capital: Just to go back on I know you talked about the senior secured notes issued last December and you mentioned you were timed out. I’m wondering if you can give us more details as to what you mean by timed out, is that – you mean that literally or you have any other facts just maybe came into play that didn’t allow you to close that transaction last year?

Mark, I meant exactly what it says, we are out of time so to get the deal done. We were – we had just over a week actually which is ambitious, we recognized that, but we made a conscious decision to go ahead for the reasons I explained mainly that we didn’t want to take the risk that January would have been dialed. And for the first issue of senior secured notes which is unusual not unknown but is unusual. We just didn’t have enough time to go read on the cycle and it is a slightly as just with predecessors having this type of paper, but our portfolio managers just faired off for a one end break over the holidays. In January, look January opens as you know really robustly. If we hind-sighted one – if we had launched in January maybe we’ll got that deal done before the markets fell apart what two weeks ago, alternatively we could have been looking to try and price in all of the turmoil and over the last week of January and early February. So you can never really time it perfectly until you’ve done it. Mark Suarez – Euro Pacific Capital: Got it. Now given that – given the state of the credit market today as you mentioned. Do you feel that maybe you can go into the market this quarter or would you rather wait maybe I should say time to market in the second quarter. What’s your sense as to the timeline as to maybe would you see an issue from new guys?

Well Mark as I’m sure you’ll understand I can’t speculate on that, that the high yield market as to most capital markets opens and closes pretty quickly, sometimes the window is short, sometimes they are longer. What we’ve focused on being here is getting as ready as we can to be able to access the market when we judge the conditions are right hence bringing forward this call by two or three weeks as I said to make sure that we’ve got current financial information out there. Mark Suarez – Euro Pacific Capital: Got it. And okay, so just turning into that macro picture for a second. You talked about the KG market and its limited credit availability, we’ve seen that over the past for quite sometime actually. Have you seen an increased selling activity given that of second-hand vessels from these owners given that a lot of them are in financial distress since the last quarter that we – since the last earnings call if you will?

Yes, yes, we reckon that the source of most scrapped tonnage in 2013 and so far in 2014 has been from Germany. Bear in mind they own part of the charter fleet by capacity which is what more actually and yes they enhanced the charter fleet by capacity and so 30% with the group of the total fleet as well. So now they’re in distress, they’re financed by private individuals on the equity side, thanks that are on distress, they can’t raise extra capital and running out of liquidity, they’re being obliged to sell and we reckon that 35% to 40% of scrapping last year was out of Germany. Mark Suarez – Euro Pacific Capital: Okay. So you feel that a lot of the sources or deals may potentially come from that market or what other sources you think that maybe now begin to start thinking about selling their second-hand tonnage?

Yes, I mean Germany certainly would be a source of transactions it has been seen to-date. We’ve also seen small scale (indiscernible) in these spectrums actually is between owners and liner operations to improve liquidity but retain access to tonnage so that through potential types of deal in the market. Mark Suarez – Euro Pacific Capital: Got it. And just to go back to comment on Panamax vessels I think some – the last question regarding Panamax tonnage here. In terms of the demand if you’re looking out the demand type for second-hand tonnage and what particular vessel segments have you seen, have you seen any sort of activity pickups since last year in terms of particular vessel segments that maybe some of the owners are going after?

Not in terms of size but yes, I pervasively given one of the geared vessels is subject to tonnage to where it’s gearing or gear. It’s the geared sector that seems to have attracted quite a lot of interest for transactions within the mid-sized ships were smaller, asset class that we’ve explained and it seems to offer potential up term. Mark Suarez – Euro Pacific Capital: Sure.

Upside rather over the next two, three years, geared vessels are even more constrained in the order book etcetera, etcetera. Mark Suarez – Euro Pacific Capital: Okay.

Well, while we are talking about vessels, given a piece of paper just to clarify, when Chris Snyder asked the question about the scrapping activity of Panamax vessels, I said, today 12.5 – sorry 5% 14 vessels, that was wrong I am sorry, that’s been about 33 vessels scrapped in 2013 and year-to-date 14, that represents about 5% of the fleet. So it’s still significant of the Panamax fleet. Mark Suarez – Euro Pacific Capital: Okay, great. That’s all I have for now. Thanks for your time as always, Ian.

Okay.

Thank you. Our next question comes from Zach Pancratz of DRZ. Your line is open. Zach Pancratz – DRZ: Good afternoon, Ian.

Hi, Zach. Zach Pancratz – DRZ: We appreciate you guys moving up the earnings release and being proactive in trying to get this refinancing done. Just a couple of quick questions from me, I am curious if you have the numbers on what your earnings would have been or your net income would have been, had you not had interest rate swaps in close?

Yes. We just back out the two items in the income and expenditure for those line items. So we had the reported $32.5 million if we are doing it very quickly here, if we take off that game that they will be about flat about 32. Zach Pancratz – DRZ: Okay.

Because the realized loss in the year was 14 million and the unrealized gain was 14.3 million as it happened. So it’s a loss. Zach Pancratz – DRZ: Okay. And moving to the next question in the event, you guys are successful in refinancing, what are the impacts on those swaps? Will you guys have to take a loss on them or how does that all flow through?

We would more than likely have to take out the balance sheet liability, i.e., pay them down, they are secured on the same assets as the underlying bank debt and it’s effectively a further loan that have to pay off about $20 million, $21.5 million at December 31. Zach Pancratz – DRZ: Okay. So, in the event, I mean I know you guys are pursuing this, but you would have been nothing, the cash flow benefit that you will get from the interest rate swaps rolling off would be no longer if you wouldn’t fall through with the new financing?

Yes. Zach Pancratz – DRZ: Okay. That’s all I have. Thank you and best of luck.

Thank you very much.

Thank you. (Operator Instructions) Thank you. Our next question comes from Charles Ronson of Northeast Securities. Your line is open. Charles Ronson – Northeast Securities: Hi, we haven’t spoken before. I have a question for you perhaps I would like some clarification of comments on chart 6, you have I think 8 ship vessels which CMA CGM has reserved right to redeliver, that means that they can reject the lease?

No, you are looking at some – the bar chart showing our 17 vessels. Charles Ronson – Northeast Securities: Yes, it’s Page 5 actually.

Yes. It’s only the top two vessels that under the contract say CMA CGM can… Charles Ronson – Northeast Securities: Okay.

As early as the first half of the April, the 8 vessels that you are talking about, the 8 vessels have firm contracts, four of them through to August-September 2016 and four through August-September 2017 at the earliest. Charles Ronson – Northeast Securities: Okay.

There is no option for the CMA to cancel these contracts early or for us to cancel the contracts early. Charles Ronson – Northeast Securities: No, of course not.

So it’s only the top two vessels that have been, they are first finding their chances expired in September 2012 we renewed for eight months to May 2013 and renewed for further year or so to early April 2014 and we will see what we can do with them as we discussed. Charles Ronson – Northeast Securities: Okay, thank you very much. It was my misreading of the chart then.

No problem, happy to clarify. Charles Ronson – Northeast Securities: Okay.

Thank you. I am not showing any further questions in queue. This does conclude the call for today. Ladies and gentlemen, thanks for participating in today’s conference. This concludes today’s program. You may all disconnect. Everyone, have a great day.

Thanks everybody.