Hyundai in $150 million sale and leaseback deal with Danaos

Hyundai in $150 million sale and leaseback deal with Danaos    Korea’s Hyundai Merchant Marine has entered into a sale and leaseback agreement with Greek shipowner Danaos Corp. for five 2,181-TEU containerships in a deal worth more than $150 million.
   The vessels, Hyundai Vladivostok, Hyundai Advance, Hyundai Stride, Hyundai Future and the Hyundai Sprinter, were all built in the second half of 1997 by Hyundai Heavy Industries.
   Athens-based Danaos said it would finance the deal with existing credit facilities and its own funds.
   The ships will be delivered to Danaos between July and October this year following five-year dry-docking planned maintenance. The company will then charter the ships back to the Seoul-based shipping line on 10-year deals at fixed daily rates, which the Greek owner said “reflect current market conditions.”
   Danaos expects the five vessels to generate $20 million in EBITDA (measured as net earnings before interest, undrawn credit facility fees, taxes, depreciation and amortization of deferred financing fees) over the course of the first year of operations.
   “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,” said John Coustas, chief executive officer of Danaos.