Danaos Corporation today announced that it has signed shipbuilding contracts for five 6,500 TEU vessels with Hanjin Heavy Industries & Construction Co., Ltd. These containerships are expected to be delivered to Danaos in late 2009 and throughout June 2010.

The capital expenditure commitment which is in the region of $500 million will be financed by existing credit facilities and own funds according to work in progress under the specific terms of the shipbuilding contracts.

Danaos also arranged for 15 year charters for three of these vessels with the Yang Ming Group at a rate of $34,325 per day.