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Danaos Corporation buys three ships through joint venture

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Staff writer ▼ | September 24, 2015
Danaos Corporation announced the acquisition of three vessels through a newly-formed joint venture, capitalizing on depressed asset prices in the resale market.
Danaos Corporation
Shipping   The average length of Danaos charters is 7.4 years
The vessels were acquired by Gemini Shipholdings Corporation, a newly-formed entity beneficially owned by Danaos and its largest stockholder. Danaos' initial 49% ownership interest in Gemini was acquired through an investment of $7.35 million.

The vessels acquired are:

The 6,422 TEU NYK Lodestar, built in 2001 at Samsung Heavy Industries, which has already commenced a 2 year time charter with NYK.

The 5,610 TEU Suez Canal, built in 2002 at Hyundai Heavy Industries, which is on a 7 year bareboat charter to Gemini with a purchase obligation at the end of the charter.

The 5,544 TEU Genoa built in 2002 at Imabari Shipbuilding, which is on a 7 year bareboat charter to Gemini with a purchase obligation at the end of the charter.

In each case, the vessels have been acquired at attractive discounts to their market values. The NYK Lodestar has been chartered for a 2 year term at an above market rate.

The average length of Danaos' current vessel charters is 7.4 years with contracted revenue of $3.3 billion.

Danaos anticipates charter agreements for the Suez Canal and the Genoa will be entered into in the near future.


 

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