Danaos Corp Form 6-K Summary
Business Context and Reporting Period
This Form 6-K filing by Danaos Corporation covers the period from January 1, 2012, to March 30, 2012. The report updates the company's consolidated capitalization as of December 31, 2011, and reflects adjustments for debt activities and equity issuances occurring in the first quarter of 2012.
Key Financial Metrics
The filing provides capitalization data but does not report revenue, profit, cash flow, or operating margins for the period.
| Capitalization Item | Actual (Dec 31, 2011) | As Adjusted (Mar 30, 2012) |
|---|---|---|
| Total Debt | $3,067,392,000 | $3,223,091,000 |
| Vendor Financing (included in debt) | $65,100,000 | $115,100,000 |
| Total Stockholders' Equity | $442,535,000 | $442,535,000 |
| Total Capitalization | $3,509,927,000 | $3,665,626,000 |
| Common Shares Outstanding | 109,563,799 | 109,604,040 |
Material Changes
- Debt Activity: Between January 1, 2012, and March 30, 2012, the company drew down $167.3 million in debt, including $50.0 million in Hyundai Samho Vendor financing. Concurrently, $11.6 million in debt was repaid.
- Equity Issuance: The company issued 18,041 new shares to employees and 22,200 new shares to directors, settling equity awards granted in 2011.
- Vendor Financing: Vendor financing increased from $65.1 million to $115.1 million.
Outlook, Risks, and Contingencies
The filing does not provide specific management commentary, forward-looking guidance, or a discussion of risks for the current period. It notes that all indebtedness is secured. Additionally, the company has agreed to issue 15 million warrants to lenders at an exercise price of $7.00 per share, exercisable on a cashless basis and expiring on January 31, 2019. An additional 609 shares are scheduled for issuance to employees in 2012.
Investor Verification Checklist
- Verify the impact of the $167.3 million debt drawdown on the company's liquidity and interest coverage ratios.
- Review the terms of the Hyundai Samho Vendor financing included in the debt adjustment.
- Confirm the status of the 15 million warrants issued to lenders and their potential dilution effect.
- Consult the Annual Report on Form 20-F (filed March 30, 2012) for detailed operational results and risk factors not included in this capitalization update.