Why Shares of Global Ship Lease Are Falling Today

Shares of Global Ship Lease (NYSE: GSL) were down more than 12% on Friday after the container ship owner finalized the terms of a secondary stock offering. Secondaries by their nature add to the supply of a stock, which tends to put at least short-term pressure on the price.

Global Ship Lease, an owner of a fleet of mid-sized and smaller containerships, on Friday said it is selling 5.4 million shares of its common stock for $13 apiece. The company will raise $70.2 million in the offering, prior to expenses, or $80.7 million if the underwriters exercise their option to purchase extra shares.

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Source Fool.com