Danaos Corporation’ $550 Million Debt Restructuring

Simpson Thacher represented the committee of independent directors of the Board of Directors of Danaos Corporation (“Danaos”) in connection with Danaos’ entry into a comprehensive debt restructuring with certain of its lenders, as well as Danaos Investment Limited, its largest stockholder, and Danaos Shipping Co. Ltd., its manager.

The restructuring transaction will result in a debt reduction of approximately $551 million, the refinancing of approximately $2.2 billion in credit facilities and the issuance of 99,342,271 shares of common stock through a private placement to certain of the lenders. The closing of the transaction, which is expected to occur by July 31, 2018, is subject to definitive documentation and certain closing conditions and commitments by Danaos and Danaos Investment Limited.

Danaos is a leading international owner of containerships. Danaos’ fleet of 59 containerships aggregating 352,600 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity.

The Simpson Thacher team included Sandy Qusba (Picture), Kathrine McLendon, Megan Tweed and Lily Picón (Restructuring); and Sebastian Tiller (M&A).

Involved fees earner: Sandeep Qusba – Simpson Thacher & Bartlett; Kathrine McLendon – Simpson Thacher & Bartlett; Megan Tweed – Simpson Thacher & Bartlett; Lily Picon – Simpson Thacher & Bartlett; Sebastian Tiller – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Danaos Corporation;


Author: Ambrogio Visconti