New York-listed Greek containership owner Danaos Corporation has sealed a refinancing agreement with lenders holding around $2.2bn of debt maturing at the end of this year.
Danaos says the deal will strengthen its capital structure and reduce the company’s debt by around $551m. The refinancing will see a significant debt reduction, resetting of covenants in credit facilities, modified interest rates and amortisation profiles as well as an extension of debt maturities to the end of 2023.
John Coustas, CEO of Danaos, commented: “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. I would like to thank all of our lenders for their support, as well as our financial and legal advisors for their assistance. The Danaos management team looks forward to the completion of this transaction and moving forward as a stronger company.
“Danaos continues to be a leader in the container shipping industry as a result of our intense focus on continuously enhancing our operations and leveraging technical innovation to provide the highest quality service to our customers. Our industry has undergone significant changes during the past few years, and with the improved capital structure contemplated by this agreement, we will be well positioned to take advantage of the growth opportunities in the container sector.”
The is subject to certain conditions being met and is expected to be closed by the end of July.
Danaos Corporation has a fleet of 59 containerships with a total capacity of 352,600 teu.