SOURCE: Danaos Corporation

January 14, 2008 09:00 ET

Danaos Enters Into Agreement to Acquire Three 2,200 TEU Containerships for Delivery in the First Quarter of 2008; Vessels to Be Chartered by Hyundai Merchant Marine for Ten Years

ATHENS, GREECE--(Marketwire - January 14, 2008) - Danaos Corporation (NYSE: DAC) today announced that it has signed contracts to acquire three 1998 built, 2,200 TEU containerships. These vessels, the Hyundai Progress, the Hyundai Bridge, and the Hyundai Highway, were built by Hyundai Heavy Industries.

The size of this deal is in the region of $90 million and the vessels are expected to be delivered to Danaos on February 11, March 17 and March 18, 2008. The acquisition will be financed by existing credit facilities and own funds.

Danaos also announced that subsequent to the acquisition agreement it has arranged ten-year charter agreements for these three vessels with Hyundai Merchant Marine at fixed daily rates which reflect current market conditions. Upon delivery to Danaos, all three vessels will have just concluded their five year dry-docking planned maintenance.

For the first full year of operation, this block addition to Danaos' fleet of containers is expected to contribute approximately $12 million of EBITDA. For this purpose, EBITDA, a non-GAAP measure, shall mean net earnings before interest, un-drawn credit facility fees, taxes, depreciation and amortization of deferred financing fees.

"This acquisition marks another significant step in our development," said Dr. Coustas, Chief Executive Officer of Danaos. "We are pleased to expand further our long relationship with Hyundai Merchant Marine. Danaos has extensive experience in operating second hand vessels efficiently. This acquisition will be immediately accretive to our earnings and cash flow upon vessel delivery and furthermore these vessels will be delivered to us upon completion of their respective dry-docking. It is our plan to continue to expand our business through accretive acquisitions and grow our earnings, distributable cash flow and ultimately our dividend per share. This acquisition demonstrates our commitment to the pursuit of our corporate objectives."

About Danaos Corporation

Danaos Corporation is an international owner of containerships, chartering its vessels to many of the world's largest liner companies. Our current fleet of 37 containerships aggregating 151,725 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Danaos is the largest US listed containership company based on fleet size. Furthermore, the company has a contracted fleet of 37 additional containerships aggregating 250,068 TEU with scheduled deliveries up to 2011. The company's shares trade on the New York Stock Exchange under the symbol "DAC."

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Contact Information

  • For further information please contact:

    Company Contact:

    Dimitri Andritsoyiannis
    Chief Financial Officer
    Danaos Corporation
    Athens, Greece
    Tel: +30 210 419 6481

    Iraklis Prokopakis
    Chief Operating Officer
    Danaos Corporation
    Athens, Greece
    Tel. +30 210 419 6400

    Investor Relations and Financial Media:

    Nicolas Bornozis
    Capital Link, Inc.
    New York
    Tel. 212-661-7566