Danaos Corp is offering millions of dollars in debt as part of an effort to refinance more than $1bn in secured indebtedness.
The John Coustas-led owner of 60 boxships plans to avail $300m in senior secured notes due in 2028 in a private offering.
The New York-listed company expects to put that money, alongside a new $815m senior secured credit facility and a new $135m sale leaseback deal, to refinance $1.25bn in secured debt.
The notes will not be registered under the US Securities Act and thus may not be offered or sold in the US unless an exemption is provided.
Danaos may benefit from this week's initial public offering by Israeli liner operator Zim because it holds about 10.2m Zim shares, an IPO prospectus showed.
Danaos revealed last November that it had agreed to buy a pair of post-panamax containerships, just before rising freight rates boosted used prices for such ships.
The 8,600-teu C Hamburg and Bremen (both built 2009), have been delivered. Danaos purchased them from Germany's Claus-Peter Offen and the ships are now contracted on two-year charters with an unidentified major liner company.
Danaos improved its earnings for the third quarter as rates recovered faster than expected during the pandemic.
It posted a $42.8m profit for the third quarter of 2020, up from a $33.9m profit in the same period of 2019.
Adjusted net income came in at $47.3m compared with $37.9m, resulting in a $1.91 earnings per share that beat analyst consensus by $0.05.
Revenue came in at $118m, versus $112m a year earlier, amid the unexpected recovery
Danaos shares, which trade on the New York Stock Exchange, gained 6.1% to reach $26.50 by mid-morning on Thursday.
Harry Papachristou contributed to this article
