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Danaos Corporation's Senior Notes Offering

On October 9, 2025, Danaos Corporation, a leading player in the maritime industry, announced its pricing for a significant financial maneuver—a $500 million offering of 6.875% Senior Notes with a maturity date in 2032. This offering is crucial for the company's strategic financial planning, set to enhance its operational capabilities while also optimizing its existing debt obligations.

The offering of senior notes will be conducted as a private placement, exempt from the registration requirements stipulated by the U.S. Securities Act of 1933. This regulatory route allows Danaos to access capital without the extensive documentation and disclosure typically required for public offerings.

The proceeds from this notes offering are earmarked for several key financial maneuvers:
1. Redemption of Existing Debt: A significant portion of the funds—$262.8 million—will be used to fully redeem the 8.500% Senior Notes due in 2028. This move will not only eliminate a higher interest rate debt from the balance sheet but also streamline the company's financial structure.
2. Repayment of Secured Credit Facilities: The company plans to allocate funds to repay two secured credit facilities, totaling $185.25 million, with obligations due in December 2025. By addressing these liabilities, Danaos aims to enhance its liquidity and financial flexibility.
3. Covering Transaction Costs: The offering will also finance various costs associated with the refinancing process, including advisory fees and other transaction-related expenses.
4. General Corporate Purposes: Remaining proceeds will support Danaos's general corporate goals, ensuring the company remains agile and capable of seizing future opportunities in the maritime sector.

The closing of the offering is anticipated around October 16, 2025, pending standard closing conditions. Potential investors should note that this announcement does not serve as a redemption notice regarding the 2028 Notes; further notices will provide specific conditions for that process.

About Danaos Corporation

Based in Athens, Greece, Danaos Corporation stands as one of the largest independent owners of contemporary container vessels globally. The company boasts a fleet of 74 container ships with a total capacity of 471,477 TEUs, and it is currently overseeing the construction of 18 additional vessels, further expanding its capacity by 148,564 TEUs. The company is also diversifying its portfolio, having recently ventured into the dry bulk sector with the addition of 10 capesize drybulk vessels with an aggregate weight of 1,760,861 DWT.

Forward-Looking Statements

Danaos Corporation’s forward-looking statements about the offering and the anticipated use of proceeds reflect current expectations based on various assumptions that may encounter significant uncertainties. As a result, these outcomes are not guaranteed, and investors are encouraged to review Danaos’s regulatory filings for a comprehensive understanding of associated risks.

This latest chapter in Danaos Corporation's financial strategy emphasizes its commitment to maintaining a robust and efficient operational framework, ultimately positioning it for sustained growth in a competitive shipping industry. Investors and stakeholders will be closely monitoring these developments as the company continues to navigate the complexities of global maritime operations.