Danaos Corporation (NYSE: DAC) shares rose after the company reported better-than-expected results for its first quarter on Tuesday
The Athens-based Danaos, one of the world's largest independent owners of containerships, revealed adjusted net income proved $27.9 million, or $0.25 per share, for the three months ended March 31, 2018 compared to $24.5 million, or $0.22 per share, for the three months ended March 31, 2017, an increase of 13.9%.
Operating revenues were $111.9 million, compared to $110.1 million in the prior-year quarter, an increase of 1.6%.
Last week, Danaos reached an agreement with some of its lenders currently holding approximately $2.2 billion of debt maturing on December 31, 2018, that will significantly strengthen the Company's financial position through a debt reduction of approximately $551 million, the resetting of financial and other covenants, modified interest rates and amortization profiles and an extension of existing debt maturities by approximately five years to December 31, 2023.
In connection with this refinancing, the company will issue approximately 99.3 million shares of common stock to those lenders.
Danaos CEO John Coustas commented, "This is the culmination of a lengthy negotiation process we have undertaken with our lenders that will position Danaos for long-term success. I would like to thank all of our lenders for their support, as well as our financial and legal advisors for their assistance.
"The Danaos management team looks forward to the completion of this transaction which is expected to occur by July 31, 2018."
Shares faded three cents to $1.77 approaching noon on Wednesday
