Danaos Corporation Announces Pricing of Senior Notes Offering

Rhea-AI Summary

Danaos (NYSE:DAC) priced a private offering of $500 million 6.875% Senior Notes due 2032 on Oct 9, 2025. The company intends to use net proceeds to: (i) redeem in full the $262.8 million 8.500% Senior Notes due 2028 on or about Mar 1, 2026, (ii) repay in full a $130 million secured credit facility on Dec 1, 2025, (iii) repay in full a $55.25 million secured credit facility on Dec 1, 2025, (iv) pay refinancing costs, and (v) for general corporate purposes. The offering is expected to close on or about Oct 16, 2025, subject to customary conditions. The notes will not be registered under the Securities Act and are sold in a private placement exempt from registration.

Positive

• Priced $500 million senior notes due 2032
• New coupon at 6.875%, lower than 8.500% on 2028 notes
• Plan to redeem $262.8 million 2028 notes on ~Mar 1, 2026
• Repayment of $130M and $55.25M secured facilities on Dec 1, 2025

Negative

• Net new debt of $51.95 million after planned repayments
• Notes are unregistered private placement, limiting U.S. resale liquidity
• Transaction closing subject to customary conditions by Oct 16, 2025

Insights

Credit Strategist

Danaos priced a $500 million 6.875% senior note to refinance near‑term secured facilities and redeem higher‑coupon debt.

The transaction replaces shorter‑dated secured facilities and part of the existing 8.500% notes with a new unsecured senior note due 2032, creating a single long‑dated liability at 6.875%. Proceeds explicitly target redemption of the $262.8 million 8.500% notes due 2028 and repayment of the BNP Paribas/Credit Agricole $130 million and Alpha Bank $55.25 million secured facilities on December 1, 2025, with any remainder covering fees and general corporate purposes.

Key dependencies and risks include successful closing on or about October 16, 2025, customary closing conditions, and that the offering is private and not registered under the Securities Act. The refinancing reduces near‑term secured borrowings and replaces higher coupon paper with lower‑coupon long‑dated unsecured notes, which should lower cash interest on the redeemed portion; however, it increases unsecured long‑term leverage and leaves timing conditional on closing and any redemption mechanics for the 2028 notes. Monitor the closing on October 16, 2025, the formal redemption notice for the 2028 notes (expected around March 1, 2026), and any covenant changes disclosed at closing for material implications within the next 6–18 months.

ATHENS, Greece, Oct. 9, 2025 /PRNewswire/ -- Danaos Corporation (the "Company") (NYSE: DAC) announced today the pricing of its offering of $500 million of 6.875% Senior Notes due 2032. The notes are being offered and sold in a private offering exempt from the registration requirements under the U.S. Securities Act of 1933, as amended (the "Securities Act").

The Company intends to use the net proceeds from the offering to (i) redeem in full the $262.8 million outstanding principal amount of the Company's 8.500% Senior Notes due 2028 (the "2028 Notes") on or about March 1, 2026, (ii) repay in full the outstanding principal amount under its BNP Paribas/Credit Agricole $130 million Secured Credit Facility on December 1, 2025, (iii) repay in full the outstanding principal amount under its Alpha Bank $55.25 million Secured Credit Facility on December 1, 2025, (iv) to pay costs, fees and expenses related to the refinancing, including commissions, placement, financial advisory fees and other transaction costs and professional fees, and (v) for general corporate purposes.

This release does not constitute a notice of redemption with respect to the 2028 Notes and investors are urged to refer to the relevant notice of redemption, when available, for more information regarding the conditions precedent to such redemption, redemption price, record date and redemption date.

The offering is expected to close on or about October 16, 2025, subject to customary closing conditions.

This announcement is not an offer for sale or a recommendation or solicitation to buy or sell any securities, nor shall there be any offer, solicitation, or sale of any securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful. The notes will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state securities laws.

NOT FOR DISTRIBUTION TO ANY PERSON LOCATED OR RESIDENT IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT

About Danaos Corporation

Danaos Corporation is one of the largest independent owners of modern, large-size container vessels. Danaos Corporation's current fleet of 74 container vessels aggregating 471,477 TEUs and 18 under construction container vessels aggregating 148,564 TEUs ranks Danaos Corporation among the largest container vessels charter owners in the world based on total TEU capacity. Danaos Corporation has also recently invested in the drybulk sector with the acquisition of 10 capesize drybulk vessels aggregating 1,760,861 DWT.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect current views of Danaos Corporation with respect to the completion of the offering and the expected use of proceeds from the sale of the notes and potential impact of the offering. The forward-looking statements in this release are based upon various assumptions. Although Danaos Corporation believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Danaos Corporation cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Risks and uncertainties are further described in reports filed by Danaos Corporation with the U.S. Securities and Exchange Commission.

The forward-looking statements and information contained in this announcement are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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SOURCE Danaos Corporation

FAQ

What did Danaos (DAC) announce on Oct 9, 2025?

Danaos priced a $500M 6.875% senior notes due 2032 in a private offering.

How will the DAC offering affect the 2028 notes?

Proceeds are intended to redeem in full the $262.8M 8.500% notes due 2028 on or about Mar 1, 2026.

When will the Danaos (DAC) new notes offering close?

The offering is expected to close on or about Oct 16, 2025, subject to customary closing conditions.

What secured facilities will DAC repay with the offering proceeds?

Danaos intends to repay a $130M and a $55.25M secured credit facility on Dec 1, 2025.

Does the DAC offering increase or decrease total debt?

After planned redemptions and repayments, the offering implies a $51.95M net increase in principal outstanding.

Are the Danaos (DAC) notes registered for resale in the U.S.?

No; the notes are offered in a private placement and will not be registered under the Securities Act.