October 22, 2007
Danaos orders five 12,600 TEU box ships at Hyundai Samho
Athens-headquartered Danaos Corporation (NYSE:DAC) has ordered five 12,600 TEU containerships.
All five Post Panamax containerships will be built by Hyundai Samho Heavy Industries and are expected to be delivered to Danaos gradually starting from January until August of 2011.
Danaos has also arranged for an undisclosed "large international liner company" to charter all the vessels for 12 years each, at accretive rates. The deal increases Danaos' contracted fleet to 32 vessels with a total carrying capacity of 217,421 TEU or 150% of its current fleet.
The total contract deal size is approximately $830 million and will be financed by own funds and debt. For the first full year of operation, this five vessel block addition to Danaos' fleet of containerships is expected to contribute approximately $92 million of EBITDA, annually upon delivery of all five vessels. For this purpose, EBITDA, a non-GAAP measure, shall mean net earnings before interest, un-drawn credit facility fees, taxes, depreciation and amortization of deferred dry-docking charges and financing fees.
"We have ordered the largest size containerships available," said Dr. John Coustas, Chief Executive Officer of Danaos. "In addition we have arranged 12 year charters at accretive rates with one of the largest liner companies in the world for all five of these vessels scheduled to be delivered to us in 2011. With this order Danaos is reaffirming its position as one of the major players in the containership market worldwide. With this deal we have not only managed to increase our contracted fleet to 32 containerships, but also secure long term charters for all of our vessels currently comprising our contracted fleet. Our contracted revenue has now reached $ 6.5 billion."
Danaos Corporation's current fleet of 36 containerships aggregating 147,472 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Danaos is the largest US listed containership company based on fleet size. The company has a contracted fleet of 32 additional containerships aggregating 217,421 TEU with scheduled deliveries up to 2011.