Danaos to buy 18 box ships through stock offering

GREEK containership owner Danaos Corporation plans to raise up to US$200 million in a private placement of common stock to build 18 new box ships.

Athens-based Danaos is issuing about 54.05 million shares of common stock priced at $3.70 each, said a PrivateRaise account published in PIPEs Report, a private equity portal.

Danaos chief executive officer John Coustas, through his family trust, and members of his family, are investing $100 million. Other investors include a private company affiliated with DryShips' CEO George Economou and members of Danaos executive management.

Following the offering, Economou is expected to own a 10.6 per cent stake in Danaos and have a seat on the board.

Danaos also said it has received written commitments from 14 banks to a previously announced restructuring of its credit facility and new financing of $426 million. Danaos said it currently has a total debt of $3 billion, which is being rescheduled.
(Source:www.schednet.com)