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Danaos Takes Full Stake in Five-Ship Gemini Joint Venture

Mike Schuler
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July 2, 2021

Greek containership owner Danaos (NYSE: DAC) has exercised its option to acquire the remaining 51% equity in its joint venture Gemini Shipholdings Corporation.

Gemini owns a fleet of five containerships employed on time charters with an aggregate capacity of 32,531 TEU. , Danaos said the contract coverage for ships stands at 100% for the next 12 months, while the weighted average contract duration of the Gemini fleet is 3.8 years, weighted by contracted revenues.

Danaos revealed the purchase price the remaining stake as $86.7 million, paid in cash. The company expects net cash outflow of approximately $72.3 million, which is the purchase price net of $14.4 million of the Gemini cash balance on June 30, 2021.

Upon completion of the transaction, Danaos will own 100% of Gemini which will be consolidated within its financial results, increasing Danaos’ contracted revenue by approximately $160 million and contracted EBITDA by approximately $117 million in total.

The Gemini vessels expected to contribute contracted EBITDA of $31 million through June 30, 2022. Gemini’s total debt and net debt, which will be assumed and consolidated by Danaos, was $45 million and $30.6 million, respectively, as of June 30, 2021.

Including the five Gemini ships, Danaos’ fleet consists 65 containerships aggregating 403,793 TEUs. The company charters its ships to many of the world’s largest liner companies on fixed-rate charters.

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