YM VANCOUVER has entered service

Danaos orders three container ships and takes delivery of 37th
On delivery the three 10,000 TEU vessels will be chartered for 12 years...


 

Danaos Corporation (NYSE: DAC) today 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.

Further, on November 26, 2007, in a high level festive 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.

"We have placed one more order for very large size containerships," said Dr. Coustas, Chief Executive Officer of Danaos. "In addition we have arranged 12 year charters at accretive rates with one of the largest liner companies in the world for all three of these vessels scheduled to be delivered to us in 2011. With this order Danaos is solidifying its position as one of the major players in the containership market worldwide. With this deal we have not only managed to increase our contracted fleet to 34 containerships, but also secure long term charters for all of our vessels currently comprising our contracted fleet. Our current contracted revenue has now reached $ 7.1 billion. Furthermore, the delivery of the YM Vancouver, a large containership from Samsung Heavy Industries for which we had already arranged a 12 charter with Yang Ming Lines, increases our current fleet to 37 vesels and expands our revenue base and profitability".