Danaos Orders TEU Post Panamax Containerships
Danaos Corporation announced that it has ordered three 10,100 TEU containerships. All three Post Panamax containerships will be built by Hyundai Samho Heavy Industries and are expected to be delivered to Danaos in January, February and March of 2011. Danaos has also arranged for a large international liner company to charter all these vessels for 12 years each, at accretive rates. This deal increases Danaos' contracted fleet of newbuildings to 34 vessels with a total carrying capacity of 243,468TEU or 160% of its current fleet.The total contract deal size for these three vessels is approximately $450 million and will be financed by own funds and debt. Upon delivery, this three vessel block addition to Danaos' fleet of containerships is expected to contribute annually approximately $ 51 million of additional 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 dry-docking charges and financing fees. On November 26, 2007, in ceremony held at the premises of Samsung Heavy Industries' shipbuilding facilities, Danaos took delivery of its 37th containership, the YM Vancouver which immediately commenced its 12 year charter with Yang Ming Lines.