SOURCE: Danaos Corporation

Danaos Corporation

March 31, 2011 08:30 ET

Danaos Corporation Announces Completion of Comprehensive Financing Plan

ATHENS, GREECE--(Marketwire - March 31, 2011) - Danaos Corporation (NYSE: DAC), a leading international owner of containerships, today announced the formal completion of its previously announced Comprehensive Financing Plan, which fully funds Danaos's current newbuilding program, comprised of 13 additional containerships aggregating 129,250 TEUs with scheduled deliveries up to mid 2012. The Plan provides for new financing of $818 million including $203 million from an Export-Import Bank of China led consortium, $190 million of vendor finance and $425 million from a consortium comprising of 14 of its existing bank lenders. Repayment schedules, interest rate margin and covenants have been reset and harmonized with this new structure and provide a competitive and solid financing package until end of 2018.

As a result of the completion of these financing arrangements, the exercise price of the 15 million warrants the Company has agreed to issue to its lenders, of which 11.2 million were issued on March 17, 2011, has increased from $6.00 per share to $7.00 per share.

Danaos' CEO, Dr. John Coustas, stated:

"After a long period of negotiations Danaos is now back on track to continue with its growth strategy. What made this outcome possible was the commitment of the management and the faith that our lenders and partners have shown on us. On another hand the strength of the container market combined with strong fundamentals further solidify our position.

"Now that we can leave all that behind we will continue to serve our customers in the best possible way and continue to provide them with first class service which is the cornerstone of our success. 

"At the same time our strategy will center on delivering superior returns to our shareholders and grow accretively for their benefit.

"I would like finally to thank Evercore Partners for their valuable advice throughout this process."

About Danaos Corporation

Danaos Corporation is an international owner of containerships, chartering its vessels to many of the world's largest liner companies. Danaos' current fleet of 52 containerships aggregating 233,429 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Danaos is one of the largest U.S.-listed containership companies based on fleet size. Furthermore, Danaos has a contracted fleet of 13 additional containerships aggregating 129,250 TEU with scheduled deliveries up to the second quarter of 2012. The Danaos's shares trade on the New York Stock Exchange under the symbol "DAC".

Contact Information

  • For further information please contact:

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

    Investor Relations and Financial Media:
    Nicolas Bornozis
    Capital Link, Inc.
    New York
    Tel. 212-661-7566

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