Danaos Corporation Announces Consummation of Debt Refinancing
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.
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”.