Danaos Agrees USD 2.2 Bn Debt Refinancing
Athens-based containership owner Danaos Corporation has reached a refinancing agreement with certain lenders holding USD 2.2 billion of debt maturing on December 31, 2018.
The company informed that the deal is expected to strengthen its capital structure and result in a debt reduction of around USD 551 million.
“This comprehensive debt re-financing agreement is the culmination of a lengthy negotiation process we have undertaken with our lenders to position Danaos for long-term success,” John Coustas, Danaos’ CEO, said.
“The Danaos management team looks forward to the completion of this transaction and moving forward as a stronger company,” Coustas added.
The company will strengthen its financial position through a significant debt reduction, resetting of financial and certain other covenants in credit facilities, modified interest rates and amortization profiles and an extension of existing debt maturities by some five years to December 31, 2023.
In connection with this debt refinancing, the company will issue 99,342,271 new shares of Danaos common stock to certain of its lenders, which will represent 47.5% of the company’s outstanding common stock after giving effect to such issuance and will dilute existing shareholders ratably.
The closing of the transaction is subject to definitive documentation and certain closing conditions and commitments by the Company and DIL.
The transactions contemplated are expected to be concluded by July 31, 2018.