Contact Information: Company Contact: Dimitri Andritsoyiannis Chief Financial Officer Danaos Corporation Athens, Greece Tel: +30 210 419 6481 E-Mail: cfo@danaos.com Iraklis Prokopakis Chief Operating Officer Danaos Corporation Athens, Greece Tel: +30 210 419 6400 E-Mail: coo@danaos.com Investor Relations and Financial Media: Nicolas Bornozis President Capital Link, Inc. New York Tel: 212-661-7566 E-Mail: nbornozis@capitallink.com
Danaos Enters Into Agreement to Acquire Five 2,200 TEU Containerships for Delivery in the Second Half of 2007
Vessels to Be Chartered by Hyundai Merchant Marine for Ten Years
| Source: Danaos Corporation
ATHENS, GREECE--(Marketwire - July 18, 2007) - Danaos Corporation (NYSE : DAC ) today
announced that it has signed contracts to acquire five 1997 built, 2,200
TEU containerships. These vessels, the H.Vladivostok, H.Advance, H. Stride,
H. Future, and the H.Sprinter, were built by Hyundai Heavy Industries.
The size of the deal is slightly in excess of $150 million and the vessels
are expected to be delivered to Danaos during July, August, September and
October 2007. The acquisition will be financed by existing credit
facilities and own funds.
Danaos also announced that, subsequent to the acquisition agreement, it has
arranged ten-year charter agreements for these five vessels with Hyundai
Merchant Marine at fixed daily rates which reflect current market
conditions. Upon delivery to Danaos, all five vessels will have just
concluded their five-year dry-docking planned maintenance.
For the first full year of operation, this block addition to Danaos' fleet
of containers is expected to contribute approximately $20 million of
EBITDA. 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 financing fees.
"This acquisition marks another significant step in our development," said
Dr. Coustas, Chief Executive Officer of Danaos. "We are pleased to further
expand our long relationship with Hyundai Merchant Marine. Danaos has
extensive experience in operating second-hand vessels efficiently. This
acquisition will be immediately accretive to our earnings and cash flow
upon vessel delivery. Our physical inspections of these vessels have
verified their excellent condition. Furthermore, these vessels will be
delivered to us upon completion of their respective dry-docking within
2007. It is our plan to continue to expand our business through accretive
acquisitions in order to grow our earnings, distributable cash flow and
ultimately our dividend per share, and this acquisition demonstrates our
commitment to the pursuit of our corporate objectives."
About Danaos Corporation
Danaos Corporation is an international owner of containerships, chartering
its vessels to many of the world's largest liner companies. Its current
fleet of 30 containerships aggregating 133,425 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 and market capitalization. Furthermore, the company has a
contracted fleet of 33 additional containerships aggregating 164,924 TEU
with scheduled deliveries up to 2010. The company's shares trade on the New
York Stock Exchange under the symbol "DAC."
Visit our website at www.danaos.com