ATHENS, Greece, June 20,
2018 /PRNewswire/ -- Danaos Corporation (the "Company" or
"Danaos") (NYSE: DAC) a leading international owner of
containerships, is pleased to announce that it has reached an
agreement with certain of its lenders currently holding
approximately $2.2 billion of debt
maturing on December 31, 2018, that
will significantly strengthen the Company's capital structure and
result in a debt reduction of approximately $551 million.
Pursuant to a comprehensive debt re-financing agreement ("RA")
with certain of its lenders, as well as Danaos Investment Limited
as Trustee of the 883 Trust ("DIL"), its largest stockholder, and
its manager, Danaos Shipping Co. Ltd., the Company will strengthen
its financial position through a significant debt reduction,
resetting of financial and certain other covenants in credit
facilities, modified interest rates and amortization profiles and
an extension of existing debt maturities by approximately five
years to December 31, 2023. The
closing of the transaction is subject to definitive documentation
and certain closing conditions and commitments by the Company and
DIL.
Danaos' CEO Dr. John Coustas commented:
"This comprehensive debt re-financing agreement is the
culmination of a lengthy negotiation process we have undertaken
with our lenders to position Danaos for long-term success. I would
like to thank all of our lenders for their support, as well as our
financial and legal advisors for their assistance. The Danaos
management team looks forward to the completion of this transaction
and moving forward as a stronger company."
"Danaos continues to be a leader in the container shipping
industry as a result of our intense focus on continuously enhancing
our operations and leveraging technical innovation to provide the
highest quality service to our customers. Our industry has
undergone significant changes during the past few years, and with
the improved capital structure contemplated by this agreement, we
will be well positioned to take advantage of the growth
opportunities in the container sector."
In connection with this debt refinancing, the Company will issue
99,342,271 new shares of Danaos common stock to certain of the
Company's lenders, which will represent 47.5% of the Company's
outstanding common stock after giving effect to such issuance and
will dilute existing shareholders ratably.
DIL has made various financial and operational commitments as
part of the contemplated refinancing transactions, including a
commitment to make a further capital contribution to the Company at
completion for which it will receive no additional shares. Danaos
Investment Limited, will remain the Company's largest stockholder
following completion of the transaction.
The transactions contemplated by the RA, which are subject to
final documentation and other conditions, are expected to be
consummated by July 31, 2018.
The RA and the transactions contemplated thereby were approved
by the Company's Board of Directors, upon the recommendation of an
independent committee comprised solely of independent and
disinterested members of the Company's Board of Directors, which
was advised by an independent financial advisor and independent
counsel.
The information contained in this press release is for
informational purposes only and does not constitute an offer to
buy, nor a solicitation of an offer to sell, any securities of the
Company, nor does it constitute a solicitation of approval from any
persons with respect to the transactions contemplated by the RA or
described above.
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking
statements within the meaning of the safe harbor provisions of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, including statements about the RA
and transactions contemplated thereby, the expected timing of
completion of the transactions contemplated by the RA, the expected
benefits of the transactions contemplated by the RA, including the
expectation that such transaction will position Danaos for long
term success and enable it to move forward as a stronger company,
growth opportunities in the container sector and other statements
that are forward looking. Forward-looking statements reflect our
current views with respect to future events and financial
performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The forward-looking statements in
this release are based upon various assumptions. Although Danaos
Corporation believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond our control, Danaos
Corporation cannot assure you that it will achieve or accomplish
these expectations, beliefs or projections. Important factors that,
in our view, could cause actual results to differ materially from
those discussed in the forward-looking statements include the
effects of proposed refinancing transactions contemplated by the
RA; the risk that conditions to completion of the transactions
contemplated by the RA may not be met; the risk that we may not
complete the restructuring transactions within the expected timing;
Danaos' ability to achieve long-term success and remain an industry
leader following the refinancing transactions; the actions that
Danaos may take in the event the RA is terminated, occurrence of
any event, change, or other circumstance that could give rise to
the termination of the RA; the effects of actions taken by NYSE
against the Company during the pendency of the re-financing; the
strength of world economies and currencies, general market
conditions, including changes in charter hire rates and vessel
values, charter counterparty performance, changes in demand that
may affect attitudes of time charterers to scheduled and
unscheduled dry-docking, changes in Danaos Corporation's operating
expenses, including bunker prices, dry-docking and insurance costs,
ability to obtain financing and comply with covenants in our
financing arrangements, actions taken by regulatory authorities,
potential liability from pending or future litigation, domestic and
international political conditions, potential disruption of
shipping routes due to accidents and political events or acts by
terrorists.
Risks and uncertainties are further described in reports filed
by Danaos Corporation with the U.S. Securities and Exchange
Commission.
About Danaos Corporation
Danaos Corporation's fleet of 59 containerships aggregating
352,600 TEUs, including four vessels owned by Gemini Shipholdings
Corporation, a joint venture, ranks Danaos among the largest
containership charter owners in the world based on total TEU
capacity.
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SOURCE Danaos Corporation