SOURCE: Danaos Corporation

July 18, 2007 16:05 ET

Danaos Enters Into Agreement to Acquire Five 2,200 TEU Containerships for Delivery in the Second Half of 2007

Vessels to Be Chartered by Hyundai Merchant Marine for Ten Years

ATHENS, GREECE--(Marketwire - July 18, 2007) - Danaos Corporation (NYSE: DAC) today announced that it has signed contracts to acquire five 1997 built, 2,200 TEU containerships. These vessels, the H.Vladivostok, H.Advance, H. Stride, H. Future, and the H.Sprinter, were built by Hyundai Heavy Industries.

The size of the deal is slightly in excess of $150 million and the vessels are expected to be delivered to Danaos during July, August, September and October 2007. 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 five vessels with Hyundai Merchant Marine at fixed daily rates which reflect current market conditions. Upon delivery to Danaos, all five 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 $20 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 further expand 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. Our physical inspections of these vessels have verified their excellent condition. Furthermore, these vessels will be delivered to us upon completion of their respective dry-docking within 2007. It is our plan to continue to expand our business through accretive acquisitions in order to grow our earnings, distributable cash flow and ultimately our dividend per share, and 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. Its current fleet of 30 containerships aggregating 133,425 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 and market capitalization. Furthermore, the company has a contracted fleet of 33 additional containerships aggregating 164,924 TEU with scheduled deliveries up to 2010. The company's shares trade on the New York Stock Exchange under the symbol "DAC."

Visit our website at www.danaos.com

Contact Information

  • 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