Photo: Illustration; Image by Offshore Energy

Danaos takes full ownership of Gemini

Danaos Corporation has exercised its option to acquire the remaining equity interests in its joint venture Gemini Shipholdings Corporation.

Gemini is a Marshall Islands company incorporated in August 2015 and beneficially owned 49% by Danaos Corporation and 51% by Virage International, a company controlled by Danaos Corporation’s largest stockholder.

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The company is buying 51% of Gemini for $86.7 million in cash, while the net cash outflow for the company will be approximately $72.3 million, which is the purchase price net of $14.4 million of the Gemini cash balance on June 30, 2021.

Gemini owns a fleet of five containerships, with an aggregate capacity of 32,531 TEU, each of which is employed on a time charter.

Contract coverage for the Gemini vessels stands at 100% for the next 12 months while the weighted average contract duration of the Gemini fleet is 3.8 years.

Upon completion of the acquisition, Danaos will own 100% of Gemini and consolidate Gemini within its financial results.

Danaos expects the consolidation of Gemini to boost its contracted revenue by approximately $160 million and its contracted EBITDA by approximately $117 million in total.

Gemini’s total debt and net debt, which will be assumed and consolidated by the company, stand at $45 million and $30.6 million, respectively.

Danaos Corporation has a fleet of 65 containerships aggregating 403,793 TEUs, including the five vessels owned by Gemini Shipholdings Corporation.