Danaos Corporation Announces Consummation of Debt Refinancing
April 12 2021 - 04:30PM
Business Wire
Danaos Corporation (the “Company”) (NYSE: DAC) announced today
the consummation of its previously announced $1.25 billion
refinancing of a substantial majority of its outstanding senior
secured indebtedness. On April 12, 2021, the Company refinanced all
of the outstanding indebtedness, which aggregated $1.3 billion as
of December 31, 2020, under nine of the Company’s senior secured
credit facilities, with the proceeds from a $815 million senior
secured credit facility with Citibank N.A. and National Westminster
Bank plc who have been lenders to the Company for more than 30
years, a $135 million sale leaseback agreement with Oriental Fleet
International Company Limited, an affiliate of COSCO Shipping Lease
Co., Ltd., with respect to five vessels, and the net proceeds of
the Company’s February 2021 offering of $300 million of 8.500%
Senior Secured Notes due 2028.
Danaos’ CEO Dr. John Coustas commented:
The consummation of Danaos’ refinancing, a process that was
initiated in February 2021 with our $300 million bond offering, is
a significant step forward in the capital structure of Danaos
Corporation and marks a new era for the Company. It is the
culmination of meticulous and focused hard work over the past few
years to reshape and de-risk the Company’s balance sheet and
enhance equity value.
In particular, the capital structure of Danaos has been
streamlined and simplified by refinancing nine credit facilities
into one. The Company’s debt amortization profile has been
improved, financial covenants have been simplified, and near-term
maturities have been extended through at least 2025.
Coupled with extremely strong cash flow generation, our enhanced
capital structure gives us ample capacity to pursue accretive
growth strategies and continue building upon the high-quality
operating franchise we have developed over the past four
decades.
Our focus remains on maintaining a conservative financial
profile and making thoughtful capital allocation decisions that
align with our strategy and market expectations and deliver value
to our shareholders.
Notes Listing
The Company also announced that its 8.500% Senior Notes due 2028
have been approved for listing on the Official List of The
International Stock Exchange and were admitting to trading thereon
as of April 7, 2021.
About Danaos Corporation
Danaos Corporation is one of the largest independent owners of
modern, large-size containerships. Our current fleet of 65
containerships aggregating 403,793 TEUs, including five 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. Our fleet is chartered to many of the
world’s largest liner companies on fixed-rate charters. Danaos
Corporation’s shares trade on the New York Stock Exchange under the
symbol “DAC”.
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. Forward-looking statements reflect
the current views of Danaos Corporation (including subsidiaries
unless indicated or the context requires otherwise, the “Company,”
“we,” “us,” and “our”) with respect to future events and financial
performance and may include statements concerning our operations,
cash flows, financial position, including with respect to vessel
and other asset values, plans, objectives, goals, strategies,
future events, performance or business prospects, changes and
trends in our business and the markets in which we operate, 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 we
believe 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, we cannot assure you that we
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 impact of the novel
coronavirus 2019 (“COVID-19”) pandemic and efforts throughout the
world to contain its spread, including effects on global economic
activity, demand for seaborne transportation of containerized
cargo, the ability and willingness of charterers to fulfill their
obligations to us, charter rates for containerships, shipyards
performing scrubber installations, drydocking and repairs, changing
vessel crews and availability of financing, the effects of the
refinancing transactions, the Company’s ability to achieve the
expected benefits of its refinancing transactions and comply with
the terms of its credit facilities and other agreements entered
into in connection with the such refinancing, 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
drydocking, changes in our 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.
The forward-looking statements and information contained in this
announcement are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20210412005901/en/
Company: Evangelos Chatzis Chief Financial Officer
Danaos Corporation Athens, Greece Tel.: +30 210 419 6480 E-Mail:
cfo@danaos.com Iraklis Prokopakis Senior Vice President and
Chief Operating Officer Danaos Corporation Athens, Greece Tel.: +30
210 419 6400 E-Mail: coo@danaos.com Investor Relations and
Financial Media Rose & Company New York Tel. 212-359-2228
E-Mail: danaos@rosecoglobal.com
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