Danaos Corporation Announces Acquisition of Remaining Interests in Gemini Shipholdings Corporation
July 01 2021 - 4:30PM
Business Wire
Danaos Corporation (the "Company") (NYSE: DAC) today announced
that it has exercised its option to acquire the remaining equity
interests in its joint venture Gemini Shipholdings Corporation
("Gemini"). The purchase price for the 51% of Gemini not already
owned by the Company is $86.7 million in cash, while the net cash
outflow for the Company will be approximately $72.3 million, which
is the purchase price net of $14.4 million of the Gemini cash
balance on June 30, 2021.
Gemini owns a fleet of five containerships, with an aggregate
capacity of 32,531 TEU, each of which is employed on a time
charter. Contract coverage for the Gemini vessels stands at 100%
for the next 12 months while the weighted average contract duration
of the Gemini fleet is 3.8 years, weighted by contracted
revenues.
Upon completion of the acquisition, the Company will own 100% of
Gemini and consolidate Gemini within its financial results. The
consolidation of Gemini will increase the Company's contracted
revenue by approximately $160 million and the Company's contracted
EBITDA by approximately $117 million in total. For the next 12
months, all of Gemini's vessels are employed on time charters and
expected to contribute contracted EBITDA of $31 million through
June 30, 2022. Gemini's total debt and net debt, which will be
assumed and consolidated by the Company, was $45 million and $30.6
million, respectively, as of June 30, 2021.
Gemini has a solid credit and business profile with a Net Debt /
NTM EBITDA ratio of 1x and strong contract coverage which provides
significant stability and visibility.
Clarksons Platou Securities acted as financial advisor to an
independent committee comprised solely of independent and
disinterested members of the Company's Board of Directors, which
approved the transaction.
About Danaos Corporation
Danaos Corporation is one of the largest independent owners of
modern, large-size containerships. Our fleet of 65 containerships
aggregating 403,793 TEUs, including the five vessels owned by
Gemini Shipholdings Corporation, 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 its debt 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/20210701005748/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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