Danaos Corporation Announces Bank Restructuring, New Debt Financing and Sale of $200 Million of New Common Stock
News Release
Danaos Corporation (Head Office)
August 9, 2010
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<DIV>Athens, Greece - August 9, 2010. Danaos Corporation (NYSE: DAC), a leading
international owner of containerships, announced today that it received written
commitments from all 14 of its bank lenders agreeing to the terms of Danaos’
previously announced arrangement with its lenders to modify its existing debt
obligations and provide new credit facilities. Under the agreed terms, which are
subject to final documentation and other conditions, Danaos will receive $426.0
million of new debt financing from existing bank lenders as funding toward its
current newbuilding orderbook. Additionally, under Danaos' existing bank debt
facilities, representing approximately $3.0 billion of indebtedness, the
amortization and maturities will be rescheduled, the interest rate margin will
be reduced, and the financial covenants, events of default, and guarantee and
security packages will be revised. <BR><BR>Danaos also announced that it has
entered into agreements with several investors, including its largest
stockholder, to sell to them 54.054 million shares of its Common Stock for an
aggregate purchase price of $200.0 million in cash. The shares will be issued at
$3.70 per share, which represents a 5.9% discount to the 30-day volume weighted
average share price of $3.93 per share and a 6.6% discount to the 60-day volume
weighted average share price of $3.96 per share. <BR><BR>This equity investment
satisfies a key condition to the aforementioned arrangement with Danaos' lenders
and, together with the new debt financing and existing loan modifications
contemplated by such arrangement, will be used toward the completion of Danaos'
current newbuilding program, comprised of 18 additional containerships
aggregating 159,150 TEUs with scheduled deliveries up to 2012, as described in
greater detail in the Company's Annual Report on Form 20-F filed with the
Securities and Exchange Commission on June 18, 2010. <BR><BR>The purchasers of
the Common Stock include the Company's largest stockholder, a family trust of
Dr. John Coustas, and members of his family which together will be investing
over $100.0 million. Additional investors include a private company affiliated
with George Economou, the chief executive officer of DryShips, Inc.(Nasdaq:
DRYS), members of the executive management of Danaos, as well as other
investors. Following completion of the transaction, Mr. Economou will own 10.6%
of the pro forma outstanding Common Stock and will join the Board of Directors
of the Company as an independent director. <BR><BR><B>Danaos' CEO, Dr. John
Coustas, stated:</B> <BR><BR>"We are very pleased to announce the successful
execution of the previously outlined restructuring of the Company's existing
bank debt obligations and the new debt financing, as well as the signing of
agreements with investors to purchase new Common Stock of Danaos for an
aggregate amount of $200.0 million in cash. The support of our bank lenders, as
demonstrated by their commitments to the restructuring of existing credit
facilities and providing $426.0 million of new financing, as well as the
Company’s largest stockholder and family, with a new cash investment exceeding
$100.0 million, represents a very positive indication of our continued
commitment to Danaos Corporation. I would also like to welcome Mr. George
Economou to the Board of Directors of the Company and truly believe he is a
great addition to Danaos’ Board, as we will benefit from his significant and
successful experience in the shipping industry." <BR><BR>Evercore Partners acted
as exclusive financial advisor to Danaos on all transactions associated with
this restructuring. <BR><BR><B>About Danaos Corporation</B> <BR><BR>Danaos
Corporation is an international owner of containerships, chartering its vessels
to many of the world's largest liner companies. Our current fleet of 47
containerships aggregating 203,529 TEUs, and contracted fleet of 18 additional
newbuild containerships described above, ranks Danaos among the largest
containership charter owners in the world based on total TEU capacity. Danaos is
one of the largest US listed containership companies based on fleet size. The
Company's shares trade on the New York Stock Exchange under the symbol "DAC".
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<DIV>Athens, Greece - August 9, 2010. Danaos Corporation (NYSE: DAC), a leading
international owner of containerships, announced today that it received written
commitments from all 14 of its bank lenders agreeing to the terms of Danaos’
previously announced arrangement with its lenders to modify its existing debt
obligations and provide new credit facilities. Under the agreed terms, which are
subject to final documentation and other conditions, Danaos will receive $426.0
million of new debt financing from existing bank lenders as funding toward its
current newbuilding orderbook. Additionally, under Danaos' existing bank debt
facilities, representing approximately $3.0 billion of indebtedness, the
amortization and maturities will be rescheduled, the interest rate margin will
be reduced, and the financial covenants, events of default, and guarantee and
security packages will be revised. <BR><BR>Danaos also announced that it has
entered into agreements with several investors, including its largest
stockholder, to sell to them 54.054 million shares of its Common Stock for an
aggregate purchase price of $200.0 million in cash. The shares will be issued at
$3.70 per share, which represents a 5.9% discount to the 30-day volume weighted
average share price of $3.93 per share and a 6.6% discount to the 60-day volume
weighted average share price of $3.96 per share. <BR><BR>This equity investment
satisfies a key condition to the aforementioned arrangement with Danaos' lenders
and, together with the new debt financing and existing loan modifications
contemplated by such arrangement, will be used toward the completion of Danaos'
current newbuilding program, comprised of 18 additional containerships
aggregating 159,150 TEUs with scheduled deliveries up to 2012, as described in
greater detail in the Company's Annual Report on Form 20-F filed with the
Securities and Exchange Commission on June 18, 2010. <BR><BR>The purchasers of
the Common Stock include the Company's largest stockholder, a family trust of
Dr. John Coustas, and members of his family which together will be investing
over $100.0 million. Additional investors include a private company affiliated
with George Economou, the chief executive officer of DryShips, Inc.(Nasdaq:
DRYS), members of the executive management of Danaos, as well as other
investors. Following completion of the transaction, Mr. Economou will own 10.6%
of the pro forma outstanding Common Stock and will join the Board of Directors
of the Company as an independent director. <BR><BR><B>Danaos' CEO, Dr. John
Coustas, stated:</B> <BR><BR>"We are very pleased to announce the successful
execution of the previously outlined restructuring of the Company's existing
bank debt obligations and the new debt financing, as well as the signing of
agreements with investors to purchase new Common Stock of Danaos for an
aggregate amount of $200.0 million in cash. The support of our bank lenders, as
demonstrated by their commitments to the restructuring of existing credit
facilities and providing $426.0 million of new financing, as well as the
Company’s largest stockholder and family, with a new cash investment exceeding
$100.0 million, represents a very positive indication of our continued
commitment to Danaos Corporation. I would also like to welcome Mr. George
Economou to the Board of Directors of the Company and truly believe he is a
great addition to Danaos’ Board, as we will benefit from his significant and
successful experience in the shipping industry." <BR><BR>Evercore Partners acted
as exclusive financial advisor to Danaos on all transactions associated with
this restructuring. <BR><BR><B>About Danaos Corporation</B> <BR><BR>Danaos
Corporation is an international owner of containerships, chartering its vessels
to many of the world's largest liner companies. Our current fleet of 47
containerships aggregating 203,529 TEUs, and contracted fleet of 18 additional
newbuild containerships described above, ranks Danaos among the largest
containership charter owners in the world based on total TEU capacity. Danaos is
one of the largest US listed containership companies based on fleet size. The
Company's shares trade on the New York Stock Exchange under the symbol "DAC".
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