Danaos Corporation is acquiring five containerships for more than US$150 million from Hyundai Merchant Marine, which will be chartered for 10 years.

Each ship has a capacity of 2,200 TEU and were built by Hyundai Heavy Industries a decade ago. The vessels are the Hyundai Vladivostok, the Advance, the Stride, the Future and the Sprinter, reports the UK's Shipping Times.

The ships are scheduled for delivery to Danaos between now and October. It is expected that the vessel purchase will be financed by existing credit facilities and Danaos' own funds.

Danaos has also announced that subsequent to the acquisition agreement it chartered the five vessels for 10 years each to Hyundai Merchant Marine at fixed daily rates which reflect current market conditions.

"Danaos has extensive experience in operating second hand vessels efficiently. This acquisition will be immediately accretive to our earnings and cash flow upon vessel delivery. Our physical inspections of these vessels have verified their excellent condition. Furthermore, these vessels will be delivered to us upon completion of their respective dry-docking (maintenance) within 2007," said Danaos CEO John Coustas.

"It is our plan to continue to expand our business through accretive acquisitions in order to grow our earnings, distributable cash flow and ultimately our dividend per share, and this acquisition demonstrates our commitment to the pursuit of our corporate objectives."

Danaos has also just changed an earlier order with China Shipbuilding Trading Company Limited from four 6,800-TEU ships to four 8,400-TEU vessels and signed revisions to the relevant contracts. These vessels will be built by the Shanghai Jiangnan Changxing Heavy Industry Company Limited and are expected to be delivered to Danaos during 2010, the report added.

Each ship has a capacity of 2,200 TEU and were built by Hyundai Heavy Industries a decade ago. The vessels are the Hyundai Vladivostok, the Advance, the Stride, the Future and the Sprinter, reports the UK's Shipping Times.

The ships are scheduled for delivery to Danaos between now and October. It is expected that the vessel purchase will be financed by existing credit facilities and Danaos' own funds.

Danaos has also announced that subsequent to the acquisition agreement it chartered the five vessels for 10 years each to Hyundai Merchant Marine at fixed daily rates which reflect current market conditions.

"Danaos has extensive experience in operating second hand vessels efficiently. This acquisition will be immediately accretive to our earnings and cash flow upon vessel delivery. Our physical inspections of these vessels have verified their excellent condition. Furthermore, these vessels will be delivered to us upon completion of their respective dry-docking (maintenance) within 2007," said Danaos CEO John Coustas.

"It is our plan to continue to expand our business through accretive acquisitions in order to grow our earnings, distributable cash flow and ultimately our dividend per share, and this acquisition demonstrates our commitment to the pursuit of our corporate objectives."

Danaos has also just changed an earlier order with China Shipbuilding Trading Company Limited from four 6,800-TEU ships to four 8,400-TEU vessels and signed revisions to the relevant contracts. These vessels will be built by the Shanghai Jiangnan Changxing Heavy Industry Company Limited and are expected to be delivered to Danaos during 2010, the report added.