Danaos plans to offer up to $500 million in senior notes

ATHENS - Container vessel owner Danaos Corporation (NYSE:DAC), currently valued at $1.63 billion and maintaining impressive gross margins of 70%, announced Monday plans to offer up to $500 million of Senior Notes due 2032, subject to market conditions. According to InvestingPro analysis, the company operates with moderate debt levels and maintains strong liquidity metrics.

The Athens-based shipping company intends to use the proceeds to redeem its outstanding $262.8 million 8.500% Senior Notes due 2028 on or around March 1, 2026. The funds will also repay two secured credit facilities: the $130 million BNP Paribas/Credit Agricole facility and the $55.25 million Alpha Bank facility, both due for repayment on December 1, 2025. The company’s strong financial health score of "GREAT" on InvestingPro suggests solid debt management capabilities.

Remaining proceeds will cover transaction costs and general corporate purposes, according to the company’s press release statement.

The notes will be offered through a private placement exempt from registration requirements under the U.S. Securities Act.

Danaos currently owns a fleet of 74 container vessels with a total capacity of 471,477 TEUs (twenty-foot equivalent units), with an additional 18 vessels under construction that will add 148,564 TEUs to its capacity. The company has also recently expanded into the dry bulk sector with the acquisition of 10 capesize vessels totaling 1,760,861 DWT (deadweight tonnage). Trading at just 0.45 times book value, the stock appears undervalued based on InvestingPro’s Fair Value analysis, with 12 additional ProTips available for subscribers.

The offering announcement does not constitute a notice of redemption for the 2028 Notes, and the company noted that investors should refer to the relevant notice when available for specific redemption details.

In other recent news, Danaos Corporation has announced several significant developments. The company reported its Q2 2025 earnings, revealing an adjusted earnings per share (EPS) of $6.36, which did not meet the forecasted $6.66. However, Danaos exceeded revenue expectations, posting $262.15 million against a forecast of $247.26 million. Additionally, Danaos has added $304 million to its contracted revenue backlog, partly through forward charter fixtures for existing vessels and new orders. This includes approximately $164 million from charters for four existing vessels and about $140 million from charters for two newly ordered containerships, each with five-year charter durations. These recent developments highlight Danaos’s ongoing efforts to expand its operational capacity and secure future revenue streams.

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