Contact Information: For further information please contact: Company Contact: Dimitri Andritsoyiannis Chief Financial Officer Danaos Corporation Athens, Greece Tel: +30 210 419 6481 E-Mail: cfo@danaos.com Iraklis Prokopakis Chief Operating Officer Danaos Corporation Athens, Greece Tel. +30 210 419 6400 E-Mail: coo@danaos.com Investor Relations and Financial Media: Nicolas Bornozis President Capital Link, Inc. New York Tel. 212-661-7566 E-Mail: nbornozis@capitallink.com
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
| Source: Danaos Corporation
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."
Visit our website at www.danaos.com