Norton Rose Fulbright advises on $815m secured facility for Danaos Corporation

Global law firm Norton Rose Fulbright has advised Citibank, N.A. and National Westminster Bank plc as arrangers and lenders on a $815m secured facility for Danaos Corporation. Danaos Corporation is one of the largest independent owners of modern, large-size containerships.

The proceeds of the facility, together with a $135m Chinese sale and leaseback transaction and $300m US note offering, refinanced in a single closing all of the debt of Danaos under the several secured credit facilities which had been restructured back in 2018. The matter was a logistical exercise since the new facility was secured on 48 vessels and related collateral and involved co-ordinating the release of security over 55 ships across several jurisdictions in favour of different lenders and re-mortgaging of the ships under the new financing arrangements.

Yianni Cheilas, Athens-based partner who led on the transaction, commented:

“We are pleased to have represented our key clients Citigroup and Natwest in this landmark transaction in the shipping space. The matter involved an unusual mix of big ticket commercial bank debt, sale and lease back funding and tapping the US capital markets, all concurrently deployed right at the peak of the COVID pandemic. The number of players, tight time-lines, inter-play of different capital products, market volatility and the sheer size of the fleet, painted a very interesting canvas of unusual logistical challenges, in what was otherwise a transformative transaction for Danaos.”

The team also included counsel Irini Proukaki, senior associate Guy Robson, associates Manos Chamilothoris, Ramzia Khulmi, Katerina Karagouni and paralegals Maria Papadopoulou and Gianna Kakavelaki.