- Oops!Something went wrong.Please try again later.
Danaos Corp (NYSE: DAC) announced an agreement to acquire six 5,466 TEU container vessels built at Hanjin Subic Bay shipyard en bloc for $260 million.
The vessels have an average age of 6.8 years and are on time charter contracts to liner companies with a weighted average charter duration of approximately two years.
The acquired vessels will be gradually delivered to the company by the end of the third quarter of 2021.
The company expects this transaction to increase its contracted revenue by ~$71 million and contracted EBITDA by ~$39 million in total.
The company plans to fund this acquisition using cash at hand while also evaluating debt financing alternatives to finance part of the purchase price.
Danaos had cash and cash equivalents of $68.1 million as of March 31, 2021.
"We are very pleased to announce an immediately accretive acquisition of a modern fleet at a fraction of the newbuilding cost and considerably lower than its charter free market value. The purchase price and contracted revenue associated with the vessels significantly reduce the residual risk of this transaction,” commented John Coustas, CEO of Danaos.
Price action: DAC shares are trading lower by 3.76% at $66.80 on the last check Wednesday.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.