Danaos Corporation Announces Senior Notes Offering

Rhea-AI Summary

Danaos (NYSE:DAC) announced on Oct 6, 2025 that it intends to commence a private offering of up to $500 million of Senior Notes due 2032, subject to market conditions. According to the press release, the company intends to use net proceeds to: (i) redeem in full the $262.8 million outstanding 8.500% Senior Notes due 2028 on or about Mar 1, 2026; (ii) repay in full the outstanding principal under its $130 million BNP Paribas/Credit Agricole secured facility on Dec 1, 2025; (iii) repay in full the outstanding principal under its $55.25 million Alpha Bank secured facility on Dec 1, 2025; (iv) pay refinancing costs and fees; and (v) for general corporate purposes.

The release states the offering will be a private placement exempt from SEC registration and notes the announcement is not a redemption notice or a solicitation to buy securities.

Positive

• Proposed $500M senior notes due 2032
• Planned redemption of $262.8M 8.500% notes due 2028 (target ~Mar 1, 2026)
• Repayment of secured facilities totaling $185.25M on Dec 1, 2025

Negative

• Offering is subject to market conditions; proceeds not guaranteed
• Net proceeds will cover refinancing fees and costs, reducing available cash for operations

Insights

Capital Markets Strategist

Danaos plans a $500M senior notes offering to refinance near‑term debt and secured facilities, aiming to extend maturities.

The article states the company intends to offer up to $500 million of Senior Notes due 2032 in a private placement. The disclosed use of proceeds is explicit: redeem the $262.8 million 8.500% Senior Notes due 2028, repay the BNP Paribas/Credit Agricole $130 million facility and the Alpha Bank $55.25 million facility, and cover transaction costs and general corporate purposes.

What it means: this is debt refinancing, not new asset development; the company replaces near‑term secured and higher‑coupon obligations with longer‑dated unsecured senior notes (maturity 2032), which may change the company’s maturity profile and interest mix. Why it matters: refinancing can reduce short‑term liquidity pressure by consolidating upcoming maturities, and investors should monitor final terms and interest costs to assess net benefit.

Monitorable items: watch for the offering size, final coupon/interest terms and the announced redemption/repayment actions around December 1, 2025 and the intended redemption date of on or about March 1, 2026.

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

ATHENS, Greece, Oct. 6, 2025 /PRNewswire/ -- Danaos Corporation (the "Company") (NYSE: DAC) announced today that it plans to commence an offering of up to $500 million of Senior Notes due 2032, subject to market conditions and other factors. The notes are to be 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.

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. 

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 proposed terms and the completion, timing and size of the proposed offering and the expected use of proceeds from the sale of the notes. 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.

View original content:https://www.prnewswire.com/news-releases/danaos-corporation-announces-senior-notes-offering-302575637.html

SOURCE Danaos Corporation

FAQ

What did Danaos (DAC) announce on October 6, 2025 about a debt offering?

Danaos stated it intends to commence a private offering of up to $500 million of Senior Notes due 2032, subject to market conditions.

How will the Danaos (DAC) offering affect the company’s 8.500% notes due 2028?

According to the press release, Danaos intends to use proceeds to redeem in full the $262.8 million outstanding 8.500% Senior Notes due 2028 on or about March 1, 2026.

Which bank facilities does Danaos plan to repay using the new notes proceeds?

The company intends to repay in full its $130 million BNP Paribas/Credit Agricole secured facility and its $55.25 million Alpha Bank secured facility on Dec 1, 2025.

Will Danaos (DAC) register the new 2032 notes with the SEC?

No. The press release states the notes will be offered in a private placement exempt from registration under the U.S. Securities Act.

Does the October 6, 2025 Danaos announcement constitute a redemption notice for the 2028 notes?

No. The company explicitly said this release does not constitute a notice of redemption for the 2028 notes and investors should refer to any relevant redemption notice when available.

What uses of proceeds did Danaos disclose for the proposed offering (DAC)?

The PR states proceeds will be used to redeem the 2028 notes, repay two secured credit facilities, pay refinancing costs and fees, and for general corporate purposes.