Good day, ladies and gentlemen. Thank you for standing by. And welcome to the Global Ship Lease Fourth Quarter 2014 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 follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. And I would now like to turn the conference to our host, Mr. Ian Webber, Chief Executive Officer of Global Ship Lease. Sir, you may begin.

Thank you very much. Good morning, everybody, and thanks for joining us today. I hope that you’ve been able to have a look at the press release, the earnings release that we issued earlier on this morning, and been able to access the slides that accompany this call through our website. As usual, the first two slides remind you that the call today may include forward looking statements that are based on current expectations and assumptions and are by their nature, inherently uncertain and outside of 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 of our most recent Annual Report, which we filed on Form 20-F, and you can obtain this via our website or via 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. For reconciliations of the non-GAAP financial measures to which we will refer during this call to the most directly comparable measures calculated and presented in accordance with GAAP, you should refer to the earnings release that we issued this morning, which is also available on our website. As usual, I’ll start the call by reviewing fourth quarter highlights, as well as the important progress that we made through 2014. I’ll follow that with an overview of our fleet and our growth strategy. And after some comments on the container shipping industry as a whole and on the market opportunity that we believe exists for further acquisitions in the space, I will turn the call over to Susan for her comments on our financials. Then after…

Thank you, Ian. Please turn to Slide 16, for a summary of our financial results for the three months ended December 31, 2014. We generated revenue of $36.9 million, during the fourth quarter, up approximately $800,000 from revenue of $36.1 million in the comparative 2013 period. The increase in revenue from the addition of OOCL Tianjin on October 28, 2014, was partially offset by first reduced revenue on four vessels following charter extensions by three years to late 2019, as a lower daily rate of $15,300 compared to $18,465 previously, and this was effective February 1, this last year. And second from 19 days additional offhire in the quarter for the regulatory drydocking of CMA CGM Matisse and for the drydocking to modify the bulbous bow of CMA CGM Thalassa to improve fuel efficiency at slower speeds, as well as other normal drydock books. There were no drydockings in the comparative period last year. The 19 days for drydockings plus one day of unplanned offhire during the three months ended December 31, 2014, resulted in an overall utilization of 98.8%. In the comparable period last year, there was a single day of unplanned offhire the utilization of 99.9%. Vessel operating expenses were $12.6 million for the three months period with an average cost for ownership day in the fourth quarter of $7,736, compared to $7,511 for the same period in 2013, up $225, or 3%. The increase was primarily attributable to higher crude costs. Interest expense for the three months ended September 31, [ph] 2014 was $11.8 million, including interest, amortization of deferred financing costs, and original issue discount on the notes and the commitment fee on the company’s undrawn $40 million revolving credit facility. Our derivative hedging instruments were all terminated on March 19, 2014, and had no effect…

Thank you, Susan. Before we move on to your questions, let’s use Slide 19 to briefly summarize the company’s core strengths and our strategy for creating value for our shareholders and other stakeholders. First, we’ve enjoyed success in making attractive and immediately accretive acquisitions, as we said we would do. We successfully entered into two sale and leaseback transactions, one to complete in the next couple of weeks, we expect that between them locking contracted revenue of between $75 million and $82 million over three years. And so and expand our EBITDA capacity by around $19 million a year, which is an increase of nearly 25% from the underlying 2014 run rate. Second, excluding our two 41,000 TEU vessels, which represents only 4% or so of our overall revenue and remained marginally EBITDA negative. Our fleet is fully contracted through late 2017 with contracted revenue of approximately $872 million, excluding the second acquisition and a weighted average remaining contract duration of 6.4 years at the end of 2014. This strong forward visibility and significant insulation from short-term market volatility has enabled us to confidently execute on our growth strategy, including the earlier refinancing at the beginning of 2014, and we’ll ultimately form the basis for dividend for our shareholders. First, our strong stable revised capital structure includes no refinancing obligations until 2019, when our secured notes due. Although, I’ll note in passing that we have the option of calling them from April 2016, should we find market conditions the time favorable. We’ve also eliminated our short-term preferred debt payable by installments from August 2016, and restricted maintenance covenants that have previously limit our ability to optimally allocate capital. Finally, we believe that our strategic and financial flexibility offers further opportunities during this time of continuing cyclically low asset values and fragile industry conditions where liner operators are looking to improve liquidity and are open for further sale and lease back transactions. Indeed, 2015 has started well. I’ll note that we will remain disciplined in our pursuit of charter-attached acquisitions. This is growth with an objective, not growth for growth sake. On those acquisitions, we want to be with high-quality counterparties, they need to be immediately accretive to cash flow. They need to demonstrate good internal rates of returns. And we believe that our approach will benefit from the supportive supply demand dynamics that we see for midsize and smaller vessels going forward. Acquisitions will enhance our earning power to be able to allow us to securely and consistently pass the fixed charge coverage ratio test. We continue to evaluate causes of actions that move us closer to accomplishing this goal, and we are focused on passing that test during 2015, so that our Board can be in a position to initiate a meaningful and sustainable dividend for our common shareholders. That concludes our formal remarks. I would like to hand the call back to the operator to explain the Q&A process.

[Operator Instructions] And our first question comes from Mark Suarez of Euro Pacific Capital. Please go ahead.

Hi. Good morning, Ian and Susan. Thanks for taking my questions here.

Welcome.

Morning.

Yes, just to maybe touch on the later transaction, if you just look at your balance sheet, look at your estimated fixed charges or at least what I’m estimating for 2015, it seems that you are either very close or at satisfying your fixed charge coverage covenant. And so I’m wondering with that, is strategy this year to add another vessel before looking to restate a sustainable dividend, then - and if so should we expect a similar transaction in terms of vessel size and employment terms sometime in 2015?

Mark, thank you. We are close to passing the test. We have not passed the test yet. It’s a very quantitative threshold that we need to pass. So that it’s great to have something which is black and white to focus on. We are not quite there. And we need a little bit more EBITDA, which can come through additional growth and/or cost savings. All we need are lower fixed charges which would drive a smaller requirement for EBITDA. So there is more work for us to do. But we have a number of believers that we can pull and we’re very focused on pulling those leaders, and the most obvious one, of course, is further acquisitions. I like the ones that we’ve done before depending upon our liquidity and investment capacity and let me touch on that which is the next obvious question. We have a tender offer, as people know to make to purchase $20 million of our bonds. We have to make that offer by the end of April, and it would have to close within 30 days to 60 days thereafter. If the tender offer is taken up then our interest cost reduces by $2 million, which helps us to pass the test. If the tender offer is not taken up, we have $20 million that we can use to contribute to further acquisitions. We would be generating cash at the rate of $4 million or $5 million on average per quarter. We have one unlevered asset in the balance sheet right now that Tianjin is low leverage on her. And obviously, if we were looking at buying another vessel or vessels, we have the opportunity of putting leverage on those vessels. So between those three sources of potential finance are the lack of acceptance, the tender offer, our own internal liquidity, and potential leverage on new acquisitions. We believe we have enough fire power to be able to buy enough EBITDA to help us pass the test. And that’s ignoring capital markets transactions, tack-ons to the bonds or follow-ons to the perpetual preferred. That’s probably a more comprehensive answer than you were expecting.

No, I appreciate that answer. Those are very helpful, Ian. I’m just wondering with that and just to follow-up on that answer you gave me, in terms of the tender offer, I mean, it sounds to me like, is the potential acquisition conditional on a tender offer, or is that something you would do regardless, if you find a good transaction in 2015?

We would be regardless. We are not going to sit here and wait and see what the bondholders do. We are working on stock all of the time. If the bondholders - as I say, if the bondholders take up the offer then the interest charge drops, and we need lesser EBITDA to pass the test. If we don’t take up the tender offer then we have an extra $20 million to invest in tonnage.

Great, okay. That’s very helpful. That’s all I have for now. Thanks, Ian. Thanks for your time.

Our next question comes from Katja Jancic with Sidoti & Company. Please go ahead.

Good morning

Good morning, Katja.

You mentioned there is no more drydocking scheduled for this year, what about 2016, can you provide some information on that please?

Not immediately, I think, it racks up that we’ll get the schedule and we’ll come back on to that later on in the call.

Okay. That’s all from me. Thank you.

Our next question comes from Charles Rupinski from Global Hunter Securities. Please go ahead.

Good morning.

Good morning, Charles.

Just a quick question on the retrofitting of the bulbous bow on more fuel efficiency on slow steaming for your vessel, can you just give me some color on how your fleet - how many are candidates for this type of conversion versus aren’t? And at some point in the future should speeds move up, what would the consequences would be just a little bit more color on that, maybe?

Sure. You will know that many of the major liner companies have engaged in programs of modifying the bulbous bows to their larger vessels on the Asia-Europe trade in the light of the high fuel pricing and slower steaming to achieve increased fuel efficiencies. We were servicing very closely with our charterer CMA CGM on this project, and we’re pleased to have invested in our relationship by performing this work. And just in parting the - we bow a portion of the cost of the investment in the modification and our assessment is that overall the transaction is very, very positive for us in terms of asset values.

Okay.

She is probably the only vessel in our fleets, where it’s worth considering such modification, but if that charterer has ideas, we’re always happy to discuss those ideas with them.

Okay.

The rest of our fleets has as far as possible been modified to be able to slow - to say it efficiently at lower speeds mainly engine modifications, not physical modifications through the vessel. What happens if service stage increase, well, that’s a big question. We don’t know whether they will, if our oil price that’s low-ish at the moment, but it’s ticked up recently. The lines are quite happy slow steaming, because it’s absorbing capacity, as well as continuing to be more efficient. If they’re only burning 50 tons of fuel rather than 80 tons of fuel, it doesn’t really matter whether it’s costing $600 or $250 a ton, they are still saving money.

Great.

Major lines have said, that irrespective of the reduction in oil price, they are not going to speed up, we are happy doing what they are now. The modified bulbous bow does not mean that vessel cannot sail at higher speeds. It - I guess, it would be marginally less sufficient than with the original bow. We’ll have to wait and see. And just to note, fuel cost is for the account of the charterer, rather than our self, anyway in this particular vessel has another 10 years to run on the charter.

Okay, great. Well, this is very helpful. Thank you.

[Operator Instructions] And our next question comes from Nicole Torraco from Onex Capital Partners. Please go ahead.

Hi. Just you talked around it a little bit. But in terms of prioritizing your cash between further acquisitions and dividend payments, are you able to sort of talk a little bit about where your focus would be?

I think I’ll better answer that by saying what I said before about the level of a potential dividend. I mean, we want to use our free cash flow for both growth and the return income to our equity. We’re generating roughly $50 million to $60 million of free cash flow a year $100 million of EBITDA less, $45 million of debt service preferred and high yield notes. And we’re not going to speculate on the level of the dividend, but we look to the dividends that are our contemporaries, competitors or peers, all paying, and I think the Board would be informed by the source of yields, but the licensee has been a customary of delivering, say, you can sort of reverse into allocation of that $40 million, almost $50 million of free cash flow between growth and dividend in that way.

Okay. Thanks.

There are no further questions…

So to answer your question, it looks like, we have four drydockings in 2016, maybe five, it’s five, including one of the 4,100 TEU vessels.

There are no further questions at this time. I would like to turn it back to Ian Webber for any final remarks.

Great. Thanks very much. Thanks for listening to us, and we look forward to updating you further on our call to discuss the first quarter 2015. Thank you.