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Danaos Corporation buys three ships through joint venture

Staff writer |
Danaos Corporation announced the acquisition of three vessels through a newly-formed joint venture, capitalizing on depressed asset prices in the resale market.




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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