Athens-based containership owner Danaos Corporation has cut its debt by over half a billion dollars, the company announced.
Namely, Danaos has consummated the debt refinancing for approximately USD 2.2 billion announced back in June, 2018, which was subject to definitive documentation.
The refinancing deal allows the company to bolster its capital structure and reduce its outstanding debt by approximately USD 551 million.
The deal also allows the company to modify interest rates and amortization profiles and extend debt maturities by approximately five years to December 31, 2023.
“Following the completion of this comprehensive debt refinancing, Danaos has a greatly improved capital structure, and Danaos is well positioned to take advantage of growth opportunities in the container sector. Our focus, however, remains on continuously enhancing our operations and leveraging technical innovation to provide the highest quality service to our customers,” Danaos’ CEO Dr. John Coustas, said.
In connection with this debt refinancing, the company issued 99.3 million shares of common stock to certain of the company’s lenders, representing 47.5% of its outstanding common stock.