Danaos Corporation Enters into Agreement to Acquire Six 5,466 TEU Eco-Design Wide Beam Container Vessels
July 14, 2021 at 08:03 am EDT
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Danaos Corporation announced that it has entered into an agreement to acquire six 5,466 TEU container vessels built at Hanjin Subic Bay shipyard en bloc for $260 million. The vessels, which have an average age of 6.8 years, are on time charter contracts to liner companies with a weighted average charter duration of approximately 2 years. The acquisition will increase the company's contracted revenue by approximately $71 million and the company's contracted EBITDA by approximately $39 million in total and will be funded by cash at hand, although the company is evaluating debt financing alternatives to finance part of the purchase price. The acquired vessels, which are expected to be gradually delivered to the company by the end of the third quarter of 2021, are eco-design wide beam vessels with improved fuel consumption and load efficiency characteristics when compared to conventional designs.
Danaos Corporation is a holding company and an international owner of containerships, chartering its vessels to a range of liner companies. The Company's principal business is the acquisition and operation of vessels. The Company conducts its operations through the vessel owning companies, whose principal activity is the ownership and operation of containerships that are under the management of a related party of the company. The Company's manager is Danaos Shipping Company Limited (Danaos Shipping). The Company has a fleet of over 50 containerships aggregating approximately 329,590 twenty-foot equivalent units (TEUs). Its containership fleet includes approximately 53 containerships deployed on time charters and approximately two containerships deployed on bareboat charter. Gemini Shipholdings Corporation (Gemini), a company beneficially owned by the Company, owns approximately four additional containerships of over 24,000 TEU aggregate capacity.
DANAOS CORPORATION 
