Danaos acquires three containerships in joint venture

Athens-based containership owner and chartering company Danaos Corp. partnered with its CEO in acquiring three ships at “attractive discounts to their market values.”    The Athens-based containership owner and chartering company Danaos Corp. said Wednesday it has acquired three vessels through a newly-formed joint venture, “capitalizing on depressed asset prices in the resale market.”
   The vessels were acquired by a newly formed company, Gemini Shipholdings Corporation, which is beneficially owned by Danaos and its largest stockholder.
   According to the company’s 2015 proxy statement, John Coustas, the chairman, president and chief executive officer of Danaos, owns 61.8 percent of the company’s common stock.
   Danaos’ initial 49 percent ownership interest in Gemini was acquired through an investment of $7.35 million.
   The vessels acquired are: the 6,422-TEU NYK Lodestar, on charter to NYK; the 5,610-TEU Suez Canal, on a 7 year bareboat charter to Gemini with a purchase obligation at the end of the charter; and the 5,544-TEU Genoa also 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,” said Danaos. “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.”
   The company, whose stock is traded on the New York Stock Exchange, added, “Under the Gemini Shareholders Agreement, Danaos has the right to purchase all of the beneficial interest in Gemini that it does not own for fair market value at any time after December 31, 2018, or earlier if permitted under its credit facilities.”
   Including the three Gemini ships, Danaos has a fleet of 59 ships with aggregate capacity of 351,815 TEUs.