Greek vessel charterer Danaos Corporation has restructured its US$1.25 billion debt, the refinancing reduces the outstanding debt to a single credit facility from the original nine senior secured credit lines.
Supported by Watson Farley & Williams’ (WFW) Greek office the refinancing includes a sale and leaseback deal for five vessels worth US$135m with Oriental Fleet International Company Limited, an affiliate of COSCO Shipping Lease Co., Ltd.
New York Stock Exchange listed Danaos offering includes a US$300 million bond offering in February 2021, at 8.500% due in 2028. In addition, WFW advised on a US$815m senior secured credit facility with Citibank N.A. and National Westminster Bank plc.
Danaos’ CEO Dr. John Coustas said, “The consummation of Danaos’ refinancing, a process that was initiated in February 2021 with our US$300 million bond offering, is a significant step forward in the capital structure of Danaos Corporation and marks a new era for the Company. It is the culmination of meticulous and focused hard work over the past few years to reshape and de-risk the Company’s balance sheet and enhance equity value.”
This year’s refinancing followed a US$2.2 billion restructuring in 2018, which saw the company reduce its outstanding liabilities by US$551 million and issue shares with the company retaining 52.5% of the share ownership.
Since 2018 the Danaos fleet has increased from 59 to 65 vessels of 2,200-13,100TEU, with a total capacity of 231,900TEU, including five ships owned by Gemini, in which the charterer has a 49% stake, according to the company website.