Danaos Corporation has signed contracts to acquire three 1998 built, 2,200 TEU containerships. These vessels, the Hyundai Progress, the Hyundai Bridge, and the Hyundai Highway were built by Hyundai Heavy Industries.
The size of this deal is in the region of $90m and the vessels are expected to be delivered to Danaos on February 11, March 17 and March 18, 2008. The acquisition will be financed by existing credit facilities and own funds.
Danaos also announced that subsequent to the acquisition agreement it has arranged ten-year charter agreements for these three vessels with Hyundai Merchant Marine at fixed daily rates which reflect current market conditions. Upon delivery to Danaos, all three vessels will have just concluded their five year dry-docking planned maintenance.
For the first full year of operation, this block addition to Danaos’ fleet of containers is expected to contribute approximately $12 million of EBITDA. For this purpose, EBITDA, a non-GAAP measure, shall mean net earnings before interest, un-drawn credit facility fees, taxes, depreciation and amortization of deferred financing fees.