The size of the deal is slightly in excess of $150 million and the vessels are expected to be delivered to Danaos during July, August, September and October, 2007. 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 five vessels with Hyundai Merchant Marine at fixed daily rates which reflect current market conditions. Upon delivery to Danaos, all five vessels will have just concluded their five year dry-docking planned maintenance.
Dr. Coustas, Chief Executive Officer of Danaos said: "We are pleased to further expand our long relationship with Hyundai Merchant Marine. Danaos has extensive experience in operating second hand vessels efficiently. This acquisition will be immediately accretive to our earnings and cash flow upon vessel delivery. Our physical inspections of these vessels have verified their excellent condition. Furthermore, these vessels will be delivered to us upon completion of their respective dry-docking within 2007. It is our plan to continue to expand our business through accretive acquisitions in order to grow our earnings, distributable cash flow and ultimately our dividend per share, and this acquisition demonstrates our commitment to the pursuit of our corporate objectives."
And yesterday the company said that it has agreed with China Shipbuilding Trading Company Limited the upgrading of its earlier order for four 6,800 TEU containerships to four 8,400 TEU vessels and signed the amendments to the relevant shipbuilding contracts. These vessels will be built by the Shanghai Jiangnan Changxing Heavy Industry Company Limited and are expected to be delivered to Danaos during 2010.