Move part of equity-boosting process that will see Danaos boss John Coustas and family plough another $100m into boxship company
GEORGE Economou has agreed to acquire a 10% stake in New York-listed Danaos as part of an equity-boosting process that will see Danaos boss John Coustas and family plough another $100m into the containership company.
The total $200m private sale of the company’s common stock is described as a “key condition” in an umbrella deal with all 14 of Danaos’ lending banks to secure the company’s massive newbuilding programme.
A number of Danaos’ 18 remaining container vessels on order for delivery up to 2012 have lacked finance.
As well as the capital injection, Danaos announced banks have agreed an additional $426m in new debt financing to fund the orders.
The company also said the agreements provide for modifications to its existing $3bn in bank debt facilities, including rescheduling of the amortisation and maturities, and a reduction in interest rate margins.
Financial covenants, events of default, and guarantee and security packages will also be revised, the company said.
Source: http://www.lloydslist.com/ll/sector/containers/article342232.ece
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