Danaos Corporation (NYSE: DAC) is one of the world’s largest independent owners modern, large-size containerships. The current fleet of 59 containerships aggregating 351,815 TEUs chartered to many of the world’s largest liner companies is on fixed-rate, long-term charters. Their long track record of success depends on efficient and rigorous operational standards and environmental controls. It would add three more vessels through a joint venture with Gemini Shipholdings Corporation. Danaos acquired its initial 49% ownership interest in Gemini through an investment of $7.35 million.
The three vessels are:
- The 6,422 TEU NYK Lodestar, built in 2001 at Samsung Heavy Industries, which has already commenced a 2-year time charter with NYK,
- The 5,610 TEU Suez Canal, built in 2002 at Hyundai Heavy Industries and
- The 5,544 TEU Genoa built in 2002 at Imabari Shipbuilding respectively on seven-year bareboat charter to Gemini with a purchase obligation at the end of the charter.
In each case, the acquisitions were made at a discount to the vessels’ present market value. The average length of Danaos’ current vessel charters is 7.4 years with contracted revenue of $3.3 billion. Danaos expects charter agreements for the Suez Canal and the Genoa in the near future.
The new venture will allow Danaos to resume its growth strategy without diluting shareholders. Under the Gemini shareholders agreement, Danaos has the right to purchase all of the beneficial interest in Gemini.
Danaos Corporation is one of the largest independent owners of Danaos Corporation’s shares trade on the New York Stock Exchange under the symbol “DAC”.
Source: Danaos Corporation
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