Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document and Entity Information | |
Entity Registrant Name | DANAOS CORPORATION |
Document Registration Statement | false |
Document Transition Report | false |
Document Annual Report | true |
Document Shell Company Report | false |
Entity Central Index Key | 0001369241 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 20,449,327 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 65,663 | $ 139,170 |
Accounts receivable, net | 7,556 | 7,145 |
Inventories | 9,619 | 8,494 |
Prepaid expenses | 855 | 1,458 |
Due from related parties | 20,426 | 20,512 |
Other current assets | 14,329 | 13,607 |
Total current assets | 118,448 | 190,386 |
NON-CURRENT ASSETS | ||
Fixed assets at cost, net of accumulated depreciation of $941,960 (2019: $840,429) | 2,479,937 | 2,389,874 |
Deferred charges, net | 17,339 | 11,455 |
Investments in affiliates | 15,273 | 8,965 |
Other non-current assets | 83,383 | 82,339 |
Total non-current assets | 2,595,932 | 2,492,633 |
Total assets | 2,714,380 | 2,683,019 |
CURRENT LIABILITIES | ||
Accounts payable | 10,613 | 11,168 |
Accrued liabilities | 10,960 | 8,527 |
Current portion of long-term debt, net | 155,662 | 119,673 |
Current portion of long-term leaseback obligation, net | 24,515 | 16,342 |
Accumulated accrued interest, current portion | 18,036 | 34,137 |
Unearned revenue | 19,476 | 17,960 |
Other current liabilities | 423 | 15,273 |
Total current liabilities | 239,685 | 223,080 |
LONG-TERM LIABILITIES | ||
Long-term debt, net | 1,187,345 | 1,270,663 |
Long-term leaseback obligation, net of current portion | 95,585 | 121,872 |
Accumulated accrued interest, net of current portion | 136,433 | 156,583 |
Unearned revenue, net of current portion | 19,574 | 28,528 |
Other long-term liabilities | 181 | 603 |
Total long-term liabilities | 1,439,118 | 1,578,249 |
Total liabilities | 1,678,803 | 1,801,329 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock (par value $0.01, 100,000,000 preferred shares authorized and not issued as of December 31, 2020 and December 31, 2019) | ||
Common stock (par value $0.01, 750,000,000 common shares authorized as of December 31, 2020 and December 31, 2019. 24,788,598 and 24,789,312 shares issued as of December 31, 2020 and December 31, 2019; and 20,449,327 and 24,789,312 shares outstanding as of December 31, 2020 and December 31, 2019, respectively) | 204 | 248 |
Additional paid-in capital | 755,390 | 785,274 |
Accumulated other comprehensive loss | (86,669) | (116,934) |
Retained earnings | 366,652 | 213,102 |
Total stockholders' equity | 1,035,577 | 881,690 |
Total liabilities and stockholders' equity | $ 2,714,380 | $ 2,683,019 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Accumulated depreciation | $ 941,960 | $ 840,429 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 24,788,598 | 24,789,312 |
Common stock, shares outstanding | 20,449,327 | 24,789,312 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
OPERATING REVENUES | $ 461,594 | $ 447,244 | $ 458,732 |
OPERATING EXPENSES | |||
Voyage expenses | (14,264) | (11,593) | (12,207) |
Vessel operating expenses | (110,946) | (102,502) | (104,604) |
Depreciation | (101,531) | (96,505) | (107,757) |
Amortization of deferred drydocking and special survey costs | (11,032) | (8,733) | (9,237) |
Impairment loss | (210,715) | ||
General and administrative expenses | (24,341) | (26,837) | (26,334) |
Income/(loss) from operations | 199,480 | 201,074 | (12,122) |
OTHER INCOME (EXPENSES): | |||
Interest income | 6,638 | 6,414 | 5,781 |
Interest expense | (53,502) | (72,069) | (85,706) |
Other finance expenses | (2,335) | (2,702) | (3,026) |
Equity income on investments | 6,308 | 1,602 | 1,365 |
Gain on debt extinguishment | 116,365 | ||
Other income/(expense), net | 593 | 556 | (50,456) |
Loss on derivatives | (3,632) | (3,622) | (5,137) |
Total Other Expenses, net | (45,930) | (69,821) | (20,814) |
Net Income/(Loss) | $ 153,550 | $ 131,253 | $ (32,936) |
EARNINGS/(LOSS) PER SHARE | |||
Basic earnings/(loss) per share of common stock | $ 6.51 | $ 8.29 | $ (3.10) |
Diluted earnings/(loss) per share of common stock | $ 6.45 | $ 8.09 | $ (3.10) |
Basic weighted average number of common shares | 23,588,994 | 15,834,913 | 10,622,839 |
Diluted weighted average number of common shares | 23,805,251 | 16,220,697 | 10,622,839 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | |||
Net Income/(Loss) | $ 153,550 | $ 131,253 | $ (32,936) |
Other comprehensive income/(loss): | |||
Unrealized gain/(loss) on available for sale securities | 26,633 | (1,846) | (9,771) |
Amortization of deferred realized losses on cash flow hedges | 3,632 | 3,622 | 3,694 |
Accelerated amortization of deferred realized losses on cash flow hedges | 1,443 | ||
Total Other Comprehensive Income/(Loss) | 30,265 | 1,776 | (4,634) |
Comprehensive Income/(Loss) | $ 183,815 | $ 133,029 | $ (37,570) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings | Total |
Balance at Dec. 31, 2017 | $ 78 | $ 547,918 | $ (114,076) | $ 114,785 | $ 548,705 |
Balance (in shares) at Dec. 31, 2017 | 7,843 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net Income/(Loss) | (32,936) | (32,936) | |||
Paid-in capital | 10,000 | 10,000 | |||
Issuance of common stock | $ 71 | 168,641 | 168,712 | ||
Issuance of common stock (in shares) | 7,096 | ||||
Stock compensation | $ 3 | 1,003 | 1,006 | ||
Stock compensation (in shares) | 298 | ||||
Net movement in other comprehensive income | (4,634) | (4,634) | |||
Balance at Dec. 31, 2018 | $ 152 | 727,562 | (118,710) | 81,849 | 690,853 |
Balance (in shares) at Dec. 31, 2018 | 15,237 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net Income/(Loss) | 131,253 | 131,253 | |||
Issuance of common stock | $ 94 | 53,473 | 53,567 | ||
Issuance of common stock (in shares) | 9,418 | ||||
Stock compensation | $ 2 | 4,239 | 4,241 | ||
Stock compensation (in shares) | 134 | ||||
Net movement in other comprehensive income | 1,776 | 1,776 | |||
Balance at Dec. 31, 2019 | $ 248 | 785,274 | (116,934) | 213,102 | 881,690 |
Balance (in shares) at Dec. 31, 2019 | 24,789 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net Income/(Loss) | 153,550 | 153,550 | |||
Repurchase of common stock | $ (44) | (31,083) | (31,127) | ||
Repurchase of common stock (in shares) | (4,339) | ||||
Stock compensation | 1,199 | 1,199 | |||
Stock compensation (in shares) | (1) | ||||
Net movement in other comprehensive income | 30,265 | 30,265 | |||
Balance at Dec. 31, 2020 | $ 204 | $ 755,390 | $ (86,669) | $ 366,652 | $ 1,035,577 |
Balance (in shares) at Dec. 31, 2020 | 20,449 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income/(loss) | $ 153,550 | $ 131,253 | $ (32,936) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities | |||
Depreciation | 101,531 | 96,505 | 107,757 |
Amortization of deferred drydocking and special survey costs | 11,032 | 8,733 | 9,237 |
Impairment losses | 210,715 | ||
Amortization of finance costs | 11,657 | 10,795 | 11,771 |
Exit fee accrued on debt | 521 | 556 | 2,059 |
Debt discount amortization | 5,690 | 6,071 | 3,186 |
Gain on debt extinguishment | (116,365) | ||
PIK interest | 2,911 | 3,375 | 1,433 |
Payments for drydocking and special survey costs deferred | (16,916) | (7,157) | (13,306) |
Stock based compensation | 1,199 | 4,241 | 1,006 |
Amortization of deferred realized losses on interest rate swaps | 3,632 | 3,622 | 5,137 |
Equity income on investments | (6,308) | (1,602) | (1,365) |
(Increase)/Decrease in: | |||
Accounts receivable | (411) | 2,080 | (2,723) |
Inventories | (1,125) | 390 | (43) |
Prepaid expenses | 603 | (244) | 20 |
Due from related parties | 86 | (2,542) | 16,037 |
Other assets, current and non-current | 3,635 | (17,354) | (13,728) |
Increase/(Decrease) in: | |||
Accounts payable | (181) | 114 | (894) |
Accrued liabilities | 2,433 | (3,295) | (3,456) |
Unearned revenue, current and long-term | (7,438) | (14,995) | (17,529) |
Other liabilities, current and long-term | (422) | (668) | (1,327) |
Net cash provided by operating activities | 265,679 | 219,878 | 164,686 |
Cash flows from investing activities | |||
Vessels additions | (170,661) | (5,680) | (2,830) |
Advances for vessels additions | (13,173) | (5,420) | |
Advances for vessels acquisition | (2,507) | ||
Investments | (75) | ||
Net cash used in investing activities | (170,736) | (21,360) | (8,250) |
Cash flows from financing activities | |||
Proceeds from long-term debt | 69,850 | 325,852 | |
Payments of long-term debt | (146,747) | (262,572) | (440,990) |
Proceeds from sale-leaseback of vessels | 139,080 | 146,523 | |
Payments of leaseback obligation | (153,904) | (8,309) | |
Payments of accumulated accrued interest | (25,639) | (35,358) | (8,556) |
Finance costs | (19,963) | (30,474) | (35,005) |
Repurchase of common stock | (31,127) | ||
Paid-in capital | 54,440 | 10,000 | |
Share issuance costs | (873) | (169) | |
Net cash used in financing activities | (168,450) | (136,623) | (148,868) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (73,507) | 61,895 | 7,568 |
Cash, cash equivalents and restricted cash, beginning of year | 139,170 | 77,275 | 69,707 |
Cash, cash equivalents and restricted cash, end of year | 65,663 | 139,170 | 77,275 |
Supplemental cash flow information | |||
Cash paid for interest | $ 35,215 | $ 54,868 | $ 71,915 |
Basis of Presentation and Gener
Basis of Presentation and General Information | 12 Months Ended |
Dec. 31, 2020 | |
Basis of Presentation and General Information | |
Basis of Presentation and General Information | 1. Basis of Presentation and General Information The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The reporting and functional currency of Danaos Corporation and its subsidiaries (the “Company”) is the United States Dollar. Danaos Corporation, formerly Danaos Holdings Limited, was formed on December 7, 1998 under the laws of Liberia and is presently the sole owner of all outstanding shares of the companies listed below. Danaos Holdings Limited was redomiciled in the Marshall Islands on October 7, 2005. In connection with the redomiciliation, the Company changed its name to Danaos Corporation. On October 14, 2005, the Company filed and the Marshall Islands accepted Amended and Restated Articles of Incorporation. The authorized capital stock of Danaos Corporation is 750,000,000 shares of common stock with a par value of $0.01 and 100,000,000 shares of preferred stock with a par value of $0.01. Refer to Note 18, “Stockholders’ Equity”. The Company’s vessels operate worldwide, carrying containers for many established charterers. The Company’s principal business is the acquisition and operation of vessels. Danaos conducts its operations through the vessel owning companies whose principal activity is the ownership and operation of containerships (refer to Note 2, “Significant Accounting Policies”) that are under the exclusive management of a related party of the Company (refer to Note 11, “Related Party Transactions”). On May 2, 2019, the Company effected a 1-for-14 reverse stock split of the issued and outstanding shares of common stock of the Company. All share and per share data disclosed in the accompanying consolidated financial statements give effect to this reverse stock split retroactively, for all periods presented. The reverse stock split reduced the number of the Company's outstanding shares of common stock from 213,324,455 to 15,237,456 on May 2, 2019 and affected all issued and outstanding shares of common stock. No fractional shares were issued in connection to the reverse stock split. Stockholders who would otherwise hold a fractional share of the Company's common stock received a cash payment in lieu of such fractional share. The par value and other terms of the Company's common stock were not affected by the reverse stock split. The consolidated financial statements of the Company have been prepared to reflect the consolidation of the companies listed below. The historical balance sheets and results of operations of the companies listed below have been reflected in the consolidated balance sheets and consolidated statements of operations, consolidated statements of comprehensive income/(loss), cash flows and stockholders’ equity at and for each period since their respective incorporation dates. Impact of COVID-19 on the Company’s Business The spread of the COVID-19 virus, which has been declared a pandemic by the World Health Organization, in 2020 has caused substantial disruptions in the global economy and the shipping industry, as well as significant volatility in the financial markets, the severity and duration of which remains uncertain. The impact of the COVID-19 pandemic continues to unfold and may continue to have negative effect on the Company's business, financial performance and the results of its operations, including due to decreased demand for global seaborne container trade and containership charter rates, mainly experienced in the first half of 2020. The extent of the impact will depend largely on future developments. As a result, many of the Company's estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company's estimates may change in future periods. As of December 31, 2020, Danaos consolidated the vessel owning companies (the “Danaos Subsidiaries”) listed below. All vessels are container vessels: Year Company Date of Incorporation Vessel Name Built TEU(1) Megacarrier (No. 1) Corp. September 10, 2007 Hyundai Honour 13,100 Megacarrier (No. 2) Corp. September 10, 2007 Hyundai Respect 13,100 Megacarrier (No. 3) Corp. September 10, 2007 Hyundai Smart (ex Maersk Enping) 13,100 Megacarrier (No. 4) Corp. September 10, 2007 Hyundai Speed (ex Maersk Exeter) 13,100 Megacarrier (No. 5) Corp. September 10, 2007 Hyundai Ambition (ex MSC Ambition) 13,100 CellContainer (No. 6) Corp. October 31, 2007 Express Berlin 10,100 CellContainer (No. 7) Corp. October 31, 2007 Express Rome 10,100 CellContainer (No. 8) Corp. October 31, 2007 Express Athens 10,100 Karlita Shipping Co. Ltd. February 27, 2003 Pusan C 9,580 Ramona Marine Co. Ltd. February 27, 2003 Le Havre 9,580 Oceancarrier (No. 2) Corp. October 15, 2020 Bremen (ex CPO Bremen) 9,012 Oceancarrier (No. 3) Corp. October 15, 2020 C Hamburg (ex CPO Hamburg) 9,012 Blackwell Seaways Inc. January 9, 2020 Niledutch Lion 8,626 Oceancarrier (No. 1) Corp. February 19, 2020 Charleston (ex SM Charleston) 8,533 Teucarrier (No. 5) Corp. September 17, 2007 CMA CGM Melisande 8,530 Teucarrier (No. 1) Corp. January 31, 2007 CMA CGM Attila 8,530 Teucarrier (No. 2) Corp. January 31, 2007 CMA CGM Tancredi 8,530 Teucarrier (No. 3) Corp. January 31, 2007 CMA CGM Bianca 8,530 Teucarrier (No. 4) Corp. January 31, 2007 CMA CGM Samson 8,530 Oceanew Shipping Ltd. January 14, 2002 Europe 8,468 Oceanprize Navigation Ltd. January 21, 2003 America 8,468 Rewarding International Shipping Inc. October 1, 2019 Phoebe 8,463 Boxcarrier (No. 2) Corp. June 27, 2006 CMA CGM Musset 6,500 Boxcarrier (No. 3) Corp. June 27, 2006 CMA CGM Nerval 6,500 Boxcarrier (No. 4) Corp. June 27, 2006 CMA CGM Rabelais 6,500 Boxcarrier (No. 5) Corp. June 27, 2006 CMA CGM Racine 6,500 Boxcarrier (No. 1) Corp. June 27, 2006 CMA CGM Moliere 6,500 Expresscarrier (No. 1) Corp. March 5, 2007 YM Mandate 6,500 Expresscarrier (No. 2) Corp. March 5, 2007 YM Maturity 6,500 Actaea Company Limited October 14, 2014 Performance 6,402 Asteria Shipping Company Limited October 14, 2014 Dimitra C 6,402 Continent Marine Inc. March 22, 2006 Zim Monaco 4,253 Medsea Marine Inc. May 8, 2006 Zim Dalian 4,253 Blacksea Marine Inc. May 8, 2006 Zim Luanda 4,253 Bayview Shipping Inc. March 22, 2006 Rio Grande (ex Zim Rio Grande) 4,253 Channelview Marine Inc. March 22, 2006 Zim Sao Paolo 4,253 Balticsea Marine Inc. March 22, 2006 Zim Kingston 4,253 Seacarriers Services Inc. June 28, 2005 Seattle C 4,253 Seacarriers Lines Inc. June 28, 2005 Vancouver (ex YM Vancouver) 4,253 Containers Services Inc. May 30, 2002 ANL Tongala 4,253 Containers Lines Inc. May 30, 2002 Derby D 4,253 Boulevard Shiptrade S.A September 12, 2013 Dimitris C 3,430 CellContainer (No. 4) Corp. March 23, 2007 Express Spain 3,400 CellContainer (No. 5) Corp. March 23, 2007 Express Black Sea 3,400 CellContainer (No. 1) Corp. March 23, 2007 Express Argentina 3,400 CellContainer (No. 2) Corp. March 23, 2007 Express Brazil 3,400 CellContainer (No. 3) Corp. March 23, 2007 Express France 3,400 Wellington Marine Inc. January 27, 2005 Singapore 3,314 Auckland Marine Inc. January 27, 2005 Colombo 3,314 Vilos Navigation Company Ltd. May 30, 2013 Zebra (ex MSC Zebra) 2,602 Trindade Maritime Company April 10, 2013 Amalia C 2,452 Sarond Shipping Inc. January 18, 2013 Danae C 2,524 Speedcarrier (No. 7) Corp. December 6, 2007 Highway 2,200 Speedcarrier (No. 6) Corp. December 6, 2007 Progress C 2,200 Speedcarrier (No. 8) Corp. December 6, 2007 Bridge 2,200 Speedcarrier (No. 1) Corp. June 28, 2007 Vladivostok 2,200 Speedcarrier (No. 2) Corp. June 28, 2007 Advance 2,200 Speedcarrier (No. 3) Corp. June 28, 2007 Stride 2,200 Speedcarrier (No. 5) Corp. June 28, 2007 Future 2,200 Speedcarrier (No. 4) Corp. June 28, 2007 Sprinter 2,200 (1) Twenty-foot equivalent unit, the international standard measure for containers and containership capacity. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Principles of Consolidation: The accompanying consolidated financial statements represent the consolidation of the accounts of the Company and its wholly‑owned subsidiaries. The subsidiaries are fully consolidated from the date on which control is obtained by the Company. The Company also consolidates entities that are determined to be variable interest entities, of which the Company is the primary beneficiary, as defined in the accounting guidance, if it determines that it is the primary beneficiary. A variable interest entity is defined as a legal entity where either (a) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Inter‑company transaction balances and unrealized gains/(losses) on transactions between the companies are eliminated. Investments in affiliates: The Company’s investments in affiliates are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company’s proportionate share of earnings or losses and distributions. The Company evaluates its investments in affiliates for impairment when events or circumstances indicate that the carrying value of such investments may have experienced other than temporary decline in value below their carrying value. If the estimated fair value is less than the carrying value and is considered an other than temporary decline, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Consolidated Statements of Operations. Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. On an on‑going basis, management evaluates the estimates and judgments, including those related to the selection of useful lives for tangible assets, expected future cash flows from long‑lived assets to support impairment tests, provisions necessary for accounts receivables, provisions for legal disputes, and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions and/or conditions. Reclassifications in Other Comprehensive Income/(Loss): The Company had the following reclassifications out of Accumulated Other Comprehensive Loss during the years ended December 31, 2020, 2019 and 2018, respectively (in thousands): Year ended December 31, Location of Reclassification into Income 2020 2019 2018 Amortization of deferred realized losses on cash flow hedges Net unrealized and realized losses on derivatives $ 3,632 $ 3,622 $ 3,694 Accelerated amortization of deferred realized losses on cash flow hedges Net unrealized and realized losses on derivatives — — 1,443 Total Reclassifications $ 3,632 $ 3,622 $ 5,137 Foreign Currency Translation: The functional currency of the Company is the U.S. dollar. The Company engages in worldwide commerce with a variety of entities. Although its operations may expose it to certain levels of foreign currency risk, its transactions are predominantly U.S. dollar denominated. Additionally, the Company’s wholly‑owned vessel subsidiaries transacted a nominal amount of their operations in Euros; however, all of the subsidiaries’ primary cash flows are U.S. dollar denominated. Transactions in currencies other than the functional currency are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated, are recognized in the Consolidated Statements of Operations. The foreign currency exchange gains/(losses) recognized in the accompanying Consolidated Statements of Operations for each of the years ended December 31, 2020, 2019 and 2018 were $0.4 million loss, $0.2 million loss and $0.1 million loss, respectively. Cash and Cash Equivalents: Cash and cash equivalents consist of interest bearing call deposits, where the Company has instant access to its funds and withdrawals and deposits can be made at any time, as well as time deposits with original maturities of three months or less which are not restricted for use or withdrawal. Cash and cash equivalents of $65.7 million as of December 31, 2020 (December 31, 2019: $139.2 million) comprised cash balances and short-term deposits. Restricted Cash: Cash restricted accounts include retention accounts and any cash that is legally restricted as to withdrawal or usage. Until the full repayment of the KEXIM ABN Amro loan facility in June 2018, the Company was required to deposit one-third of quarterly and one‑sixth of the semi‑annual principal installments and interest payments, respectively, due on the outstanding loan balance monthly in a retention account. On the rollover settlement date, both principal and interest were paid from the retention account. Refer to Note 3, "Cash, Cash Equivalents and Restricted Cash”. Accounts Receivable, Net: The amount shown as Accounts Receivable, net, at each balance sheet date includes estimated recoveries from charterers for hire from operating leases accounted for in accordance with Topic 842 and demurrage billings, net of a provision for doubtful accounts. Accounts receivable are short term in duration as payments are expected to be received within one year. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts based on the Company’s history of write‑offs, level of past due accounts based on the contractual term of the receivables and its relationships with and economic status of its customers. Bad debts are written off in the period in which they are identified. Insurance Claims: Insurance claims represent the claimable expenses, net of deductibles, which are expected to be recovered from insurance companies. Any costs to complete the claims are included in accrued liabilities. The Company accounts for the cost of possible additional call amounts under its insurance arrangements in accordance with the accounting guidance for contingencies based on the Company’s historical experience and the shipping industry practices. Insurance claims are included in the consolidated balance sheet line item “Other current assets”. Prepaid Expenses and Inventories: Prepaid expenses consist mainly of insurance expenses, and inventories consist of bunkers, lubricants and provisions remaining on board the vessels at each period end, which are valued at cost as determined using the first‑in, first‑out method. Costs of spare parts are expensed as incurred. Deferred Financing Costs: Loan arrangement fees incurred for obtaining new loans, for loans that have been accounted for as modified and the fees paid to third parties for loans that have been accounted for as extinguished, where there is a replacement debt and the lender remains the same, are deferred and amortized over the loans’ respective repayment periods using the effective interest rate method and are presented in the consolidated balance sheets as a direct deduction from the carrying amount of debt liability. Unamortized deferred financing costs for extinguished facilities are written-off. Loan arrangement fees related to the facilities accounted for under troubled debt restructuring with future undiscounted cash flows greater than the net carrying value of the original debt are capitalized and amortized over the loan respective repayment period using the effective interest rate method. Additionally, amortization of deferred finance costs amounting to $16.8 million, $16.9 million and $15.0 million is included in interest expenses in the Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018, respectively. Fixed Assets: Fixed assets consist of vessels. Vessels are stated at cost, less accumulated depreciation. The cost of vessels consists of the contract purchase price and any material expenses incurred upon acquisition (improvements and delivery expenses). Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels. Otherwise, these expenditures are charged to expense as incurred. Interest costs while under construction are included in vessels’ cost. The Company has acquired five vessels in the secondhand market in 2020, all of which were considered to be acquisitions of assets. Following adoption of ASU 2017-01 “Business Combinations (Topic 805)” on January 1, 2018, the Company evaluates if any vessel acquisition in secondhand market constitutes a business or not. When substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. The following assets are considered as a single asset for the purposes of the evaluation (i) a tangible asset that is attached to and cannot be physically removed and used separately from another tangible assets (or an intangible asset representing the right to use a tangible asset); (ii) in place lease intangibles, including favorable and unfavorable intangible assets or liabilities, and the related leased assets. The Company charters in two of its vessels Hyundai Honour and Hyundai Respect under a four years sale and leaseback arrangement. The proceeds received by the Company from the buyer-lessor were recognized as a financial leaseback obligation as this arrangement did not qualify for a sale of these vessels. The Company has substantive repurchase obligation of these vessels at the end of the leaseback period or earlier, at the Company's option, and retains the control over these vessels. Each leaseback payment is allocated between the liability and interest expense to achieve a constant interest rate on the leaseback obligation outstanding. The interest element of the leaseback payment is charged under "Interest expense" in the accompanying Consolidated Statements of Operations over the leaseback period. Depreciation: The cost of the Company’s vessels is depreciated on a straight-line basis over the vessels’ remaining economic useful lives after considering the estimated residual value (refer to Note 4, “Fixed Assets, net”). Management has estimated the useful life of the Company’s vessels to be 30 years from the year built. Vessels held for sale: Vessels are classified as “Vessels held for sale” when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale. Accounting for Special Survey and Drydocking Costs: The Company follows the accounting guidance for planned major maintenance activities. Drydocking and special survey costs, which are reported in the balance sheet within “Deferred charges, net”, include planned major maintenance and overhaul activities for ongoing certification including the inspection, refurbishment and replacement of steel, engine components, electrical, pipes and valves, and other parts of the vessel. The Company follows the deferral method of accounting for special survey and drydocking costs, whereby actual costs incurred are deferred and amortized on a straight‑line basis over the period until the next scheduled survey and drydocking, which is two and a half years. If special survey or drydocking is performed prior to the scheduled date, the remaining unamortized balances are immediately written off. The amortization periods reflect the estimated useful economic life of the deferred charge, which is the period between each special survey and drydocking. Costs incurred during the drydocking period relating to routine repairs and maintenance are expensed. The unamortized portion of special survey and drydocking costs for vessels sold is included as part of the carrying amount of the vessel in determining the gain/(loss) on sale of the vessel. Pension and Retirement Benefit Obligations‑Crew: The crew on board the companies’ vessels serve in such capacity under short‑term contracts (usually up to seven months) and accordingly, the vessel‑owning companies are not liable for any pension or post‑retirement benefits. Dividends: Dividends, if any, are recorded in the Company’s financial statements in the period in which they are declared by the Company’s board of directors. Impairment of Long‑lived Assets: The accounting standard for impairment of long-lived assets requires that long-lived assets and certain identifiable intangibles held and used or disposed of by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If any such indication exists, the Company performs step one of the impairment test by comparing the undiscounted projected net operating cash flows for each vessel to its carrying value. In the case of a vessel held and used, if the future net undiscounted cash flows are less than the carrying value of the vessel, the Company performs step two of impairment assessment by comparing the vessel's fair value to its carrying value and an impairment loss is recorded equal to the difference between the vessel’s carrying value and fair value. As of December 31, 2020 and 2019, the Company concluded that events and circumstances triggered the existence of potential impairment of some of its vessels. These indicators included volatility in the charter market and the vessels’ market values, as well as the potential impact the current marketplace may have on its future operations. As a result, the Company performed step one of the impairment assessment for some of the Company’s vessels by comparing the undiscounted projected net operating cash flows for each vessel to its carrying value. The Company’s strategy is to charter its vessels under multi‑year, fixed rate period charters that have the initial terms ranging from less than 1 to 18 years for vessels in its fleet, providing the Company with contracted stable cash flows. The Company used number of factors and assumptions in its undiscounted projected net operating cash flow analysis included, among others, operating revenues, off‑hire revenues, drydocking costs, operating expenses and management fees estimates. Revenue assumptions were based on contracted time charter rates up to the end of life of the current contract of each vessel as well as the estimated time charter equivalent rates for the remaining life of the vessel after the completion of its current contract for non-contracted revenue days. The estimated daily time charter equivalent rate used for the non - contracted revenue days of each vessel is considered a significant assumption. Recognizing that the container transportation industry is cyclical and subject to significant volatility based on factors beyond the Company’s control, management believes that the most recent 5 to 15 years historical average time charter rates represent a reasonable benchmark for the estimated time charter equivalent rates for the non-contracted revenue days, as such averages take into account the volatility and cyclicality of the market. In addition, the Company used an annual operating expenses escalation factor and estimates of scheduled and unscheduled off-hire revenues based on historical experience. All estimates used and assumptions made were in accordance with the Company’s internal budgets and historical experience of the shipping industry. As at December 31, 2020 and 2019, the Company's assessment concluded that step two of the impairment analysis was not required for any vessel, as the undiscounted projected net operating cash flows of all vessels exceeded the carrying value of the respective vessels. As of December 31, 2020 and 2019, no impairment loss was identified. As at December 31, 2018, the Company’s assessment concluded that step two of the impairment analysis was required for certain of its vessels, as the undiscounted projected net operating cash flows of certain vessels did not exceed the carrying value of the respective vessels. Fair value of each vessel was determined by management with the assistance from valuations obtained by third party independent shipbrokers. As of December 31, 2018, the Company recorded an impairment loss of $210.7 million for ten of its vessels that are held and used, which is reflected under “Impairment loss” in the accompanying Consolidated Statements of Operations. Investments in Debt Securities: Available for sale securities are carried at fair value with net unrealized gain/(loss) included in accumulated other comprehensive income/(loss), subject to impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Interest income, including amortization of premiums and accretion of discounts are recognized in the interest income in the consolidated statements of operations. Upon sale, realized gain/(loss) is recognized in the consolidated statement of operations based on specific identification method. The Company adopted ASU 2016-13 “Financial Instruments – Credit Losses (Topic 326)” on January 1, 2020. Management evaluates securities for impairment on a quarterly basis. An investment is considered impaired if the fair value of the investment is less than its amortized cost. Consideration is given to: i) if the Company intends to sell the security (that is, it has decided to sell the security); ii) it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis; or iii) a credit loss exists. If it is determined that the Company intends to sell the security or it is more likely than not that the Company will be required to sell the securities before the recovery of its entire amortized cost basis, the impairment loss, difference between the fair value and amortized cost basis of the securities, will be recorded in the accompanying Consolidated Statements of Operations. The fair value of debt securities is estimated based on a weighted combination of (1) a yield-to-maturity analysis based on a quoted (non-binding) price from a third party broker, (2) a yield-to-maturity analysis of a similar bond(s) in an active market and (3) the available market data for yield-to-maturity for the corporate bonds, if available. The weightings and the yield-to-maturities used in the calculation of fair value of the debt securities are assumptions that require significant management judgement. When the securities are impaired at the reporting date, and the Company does not meet the guidance for intending to sell or more likely than not being required to sell the securities before the amortized cost basis is recovered, the Company determines whether the impairment is related to credit or non-credit factors. To determine the amount of impairment related to credit, the Company compares the present value of the cash flows expected to be collected on the securities with the amortized cost basis of the securities. If the present value of cash flows expected to be collected is less than the securities’ amortized cost basis, the difference is recorded as an allowance for credit losses in the accompanying Consolidated Statements of Operations. Any remaining difference between the securities’ fair value and amortized cost basis is considered to be non-credit related impairment and is recorded in the accompanying Consolidated Statements of Other Comprehensive Income/(Loss). Investments in Equity Securities: The Company classifies its equity securities of ZIM at cost as the Company does not have the ability to exercise significant influence. Following the adoption of ASU 2016-01 “Recognition and measurement of Financial Assets and Financial Liabilities” on January 1, 2018, the Company measures the investment in ZIM equity securities at cost, less impairment, adjusted for subsequent observable price changes. ZIM equity securities do not have readily determinable fair value in any of the periods presented. Management evaluates the equity security for other than temporary impairment on a quarterly basis. An investment is considered impaired if the fair value of the investment is less than its cost. Consideration is given to significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee, significant adverse change in the regulatory, economic, or technological environment of the investee, significant adverse change in the general market condition of either the geographic area or the industry in which the investee operates, as well as factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. Accounting for Revenue and Expenses: The Company derives its revenue from time charters and bareboat charters of its vessels, each of which contains a lease. These charters involve placing the specified vessel at charterers’ use for a specified rental period of time in return for the payment of specified daily hire rates. Most of the charters include options for the charterers to extend their terms. Under a time charter, the daily hire rate includes lease component related to the right of use of the vessel and non-lease components primarily related to the operating expenses of the vessel incurred by the Company such as commissions, vessel operating expenses: crew expenses, lubricants, certain insurance expenses, repair and maintenance, spares, stores etc. and vessel management fees. Under a bareboat charter, the daily hire rate includes only lease component related to the right of use of the vessel. The revenue earned based on time charters is not negotiated in separate components. Revenue from the Company’s time charters and bareboat charters of vessels is accounted for as operating leases on a straight line basis based on the average fixed rentals over the minimum fixed rental period of the time charter and bareboat charter agreements, as service is performed. The Company elected the practical expedient which allows the Company to treat the lease and non-lease components as a single lease component for the leases where the timing and pattern of transfer for the nonlease component and the associated lease component to the lessees are the same and the lease component, if accounted for separately, would be classified as an operating lease. The combined component is therefore accounted for as an operating lease under ASC 842, as the lease components are the predominant characteristics, in 2020 and 2019. The Company adopted the new “Leases” standard (Topic 842) on January 1, 2019 using the modified retrospective method. The Company elected the practical expedient to use the effective date of adoption as the date of initial application. Furthermore the Company elected practical expedients, which allow entities (i) to not reassess whether any expired or existing contracts are considered or contain leases; (ii) to not reassess the lease classification for any expired or existing leases (iii) to not reassess initial direct costs for any existing leases and (iv) which allows to treat the lease and non-lease components as a single lease component due to its predominant characteristic. The adoption of this standard did not have a material effect on the consolidated financial statements since the Company is primarily a lessor and the accounting for lessors is largely unchanged under this standard. Voyage Expenses: Voyage expenses include port and canal charges, bunker (fuel) expenses (bunker costs are normally covered by the Company’s charterers, except in certain cases such as vessel re‑positioning), address commissions and brokerage commissions. Under multi‑year time charters and bareboat charters, such as those on which the Company charters its containerships and under short‑term time charters, the charterers bear the voyage expenses other than brokerage and address commissions. As such, voyage expenses represent a relatively small portion of the vessels’ overall expenses. Vessel Operating Expenses: Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses for repairs and maintenance, the cost of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Aggregate expenses increase as the size of the Company’s fleet increases. Under multi‑year time charters, the Company pays for vessel operating expenses. Under bareboat charters, the Company’s charterers bear most vessel operating expenses, including the costs of crewing, insurance, surveys, drydockings, maintenance and repairs. General and administrative expenses: General and administrative expenses include management fees paid to the vessels’ manager (refer to Note 11, “Related Party Transactions”), audit fees, legal fees, board remuneration, executive officers compensation, directors & officers insurance and stock exchange fees. Repairs and Maintenance: All repair and maintenance expenses are charged against income when incurred and are included in vessel operating expenses in the accompanying Consolidated Statements of Operations. Troubled Debt Restructuring and Accumulated Accrued Interest: Prior to the finalization of the Refinancing (refer to Note 10, “Long-Term Debt, Net”), the Company concluded that it was experiencing financial difficulty and that certain of the lenders granted a concession (as part of the Refinancing). The Company was experiencing financial difficulty primarily as a result of the projected cash flows not being sufficient to service the balloon payment due as of December 31, 2018 without restructuring and the Company was not able to obtain funding from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt. As a result, the accounting guidance for troubled debt restructuring (“TDR”) was applied at the Closing Date. The TDR accounting guidance requires the Company to record the value of the new debt to its restructured undiscounted cash flows over the life of the loan, including cash flows associated with the remaining scheduled interest and principal payments not to exceed the carrying amount of the original debt. In cases in which the recorded value of the debt instrument exceeds the sum of undiscounted future cash flows to be received under the restructured debt instrument, the recorded value is reduced to the sum of undiscounted future cash flows, and a gain is recorded. As a result of the TDR accounting, the interest expense related to the future periods on certain facilities was recognized under the accumulated accrued interest line in the Balance Sheet. Interest payments relating to the future interest recognized in accumulated accrued interest, are recognized as a reduction to the accumulated accrued interest payable when these are paid. As a result, these interest payments are not recorded as interest expense. When interest rates change, actual cash flows will differ from the cash flows measured on the Refinancing closing date. The accounting treatment for changes in cash flows due to changes in interest rates depends on whether there is an increase or a decrease from the spot interest rate used in the initial TDR accounting (“threshold interest rate”). Fluctuations in the effective interest rate after the Refinancing from changes in the interest rate or other cause are accounted for as changes in estimates in the periods in which these changes occur. Upon an increase in the interest rates from the threshold interest rate used to calculate accumulated accrued interest payable, the Company recognizes additional interest expenses in the period the expense is incurred. The additional interest expense is calculated by multiplying the difference between the current interest rate and the threshold interest rate with the current carrying value of the debt. A gain due to decrease in interest rates (‘interest windfall’) will not be recognized until the debt facilities have been settled and there are no future interest payments. In case there are subsequent increases in interest rates above the threshold interest rate after a previous decrease in interest rates, the carrying amount of the accumulated accrued interest will be reduced by the interest payments in excess of the threshold interest rate until the prior interest windfall due to decrease in the interest rates is recaptured on a cumulative basis. The Paid-in-kind interest (“PIK interest”) related to each period will increase the carrying value of the loan facility and correspondingly decrease the carrying value of the accumulated accrued interest. PIK interest in excess of the amount recognized in the accumulated accrued interest is expensed in the period the expense is incurred. Going Concern: The management of the Company assesses the Company’s ability to continue as a going concern at each period end. The assessment evaluates whether there are conditions that give rise to substantial doubt to continue as a going concern within one year from the consolidated financial statements issuance date. If a substantial doubt to continue as a going concern is identified and after considering management’s plans this substantial doubt is alleviated the Company discloses the following: (i) principal conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern (before consideration of management’s plans), (ii) management’s evaluation of the significance of those conditions or events in relation to the Company’s ability to meet its obligations, (iii) management’s plans that alleviated substantial doubt about the Company’s ability to continue as a going concern. If a substantial doubt to continue as a going concern is identified and after considering management’s plans this substantial doubt is not alleviated the Company discloses the following: (i) a statement indicating that there is substantial doubt about the Company’s ability to continue as a going concern, (ii) principal conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern, (iii) management’s evaluation of the significance of those conditions or events in relation to the Company’s ability to meet its |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2020 | |
Cash, Cash Equivalents and Restricted Cash | |
Cash, Cash Equivalents and Restricted Cash | 3. Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash consisted of the following (in thousands): As of As of As of As of December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 Cash and cash equivalents $ 65,663 $ 139,170 $ 77,275 $ 66,895 Restricted cash — — — 2,812 Total $ 65,663 $ 139,170 $ 77,275 $ 69,707 |
Fixed Assets, Net
Fixed Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Fixed Assets, Net | |
Fixed Assets, Net | 4. Fixed Assets, Net Fixed assets, net consisted of the following (in thousands): Vessel Accumulated Net Book Costs Depreciation Value As of January 1, 2018 $ 3,559,161 $ (763,190) $ 2,795,971 Additions 2,830 — 2,830 Impairment Loss (337,738) 127,023 (210,715) Depreciation — (107,757) (107,757) As of December 31, 2018 $ 3,224,253 $ (743,924) $ 2,480,329 Additions 6,050 — 6,050 Depreciation — (96,505) (96,505) As of December 31, 2019 $ 3,230,303 $ (840,429) $ 2,389,874 Additions 191,594 — 191,594 Depreciation — (101,531) (101,531) As of December 31, 2020 $ 3,421,897 $ (941,960) $ 2,479,937 The Company took delivery of the following vessels in the year ended December 31, 2020: Company Vessel Name Year Built TEU Date of vessel delivery Blackwell Seaways Inc. Niledutch Lion 2008 8,626 January 23, 2020 Rewarding International Shipping Inc. Phoebe 2005 8,463 April 14, 2020 Oceancarrier (No.1) Corp. Charleston 2005 8,533 June 10, 2020 Oceancarrier (No. 2) Corp. Bremen (ex CPO Bremen) 2009 9,012 December 3, 2020 Oceancarrier (No. 3) Corp. C Hamburg (ex CPO Hamburg) 2009 9,012 December 15, 2020 Total acquisition costs of the new vessels amounted to $141.9 million in the year ended December 31, 2020. Additionally, in the first half of 2020, the Company installed scrubbers on nine of its vessels with total costs of $39.9 million. As of December 31, 2020 and 2019, the Company concluded that events and circumstances triggered the existence of potential impairment for some of the Company’s vessels. These indicators included volatility in the charter market and the vessels' market values, as well as the potential impact the current marketplace may have on its future operations. As a result, the Company performed step one of the impairment assessment for some of the Company's vessels by comparing the undiscounted projected net operating cash flows for each of these vessels to its carrying values. As at December 31, 2020 and 2019, the Company’s assessment concluded that step two of the impairment analysis was not required for any vessel, as the undiscounted projected net operating cash flows of all vessels exceeded the carrying value of the respective vessels. As of December 31, 2020 and 2019, no impairment loss was identified. As of December 31, 2018, the Company concluded that events and circumstances triggered the existence of potential impairment of its long-lived assets. These indicators included volatility in the charter market and the vessels’ market values, as well as the potential impact the current marketplace may have on its future operations. As a result, the Company performed step one of the impairment assessment of the Company’s vessels by comparing the undiscounted projected net operating cash flows for each vessel to its carrying value. As at December 31, 2018, the Company’s assessment concluded that step two of the impairment analysis was required for certain of its vessels, as the undiscounted projected net operating cash flows of certain vessels did not exceed the carrying value of the respective vessels. Fair value of each vessel was determined by management with the assistance from valuations obtained by third party independent shipbrokers. As of December 31, 2018, the Company recorded an impairment loss of $210.7 million for ten of its vessels that are held and used, which is reflected under “Impairment loss” in the accompanying Consolidated Statements of Operations. The residual value (estimated scrap value at the end of the vessels’ useful lives) of the fleet was estimated at $428.2 million and $378.2 million as of December 31, 2020 and December 31, 2019, respectively. The Company has calculated the residual value of the vessels taking into consideration the 10 year average and the 5 year average of the scrap. The Company has applied uniformly the scrap value of $300 per ton for all vessels. The Company believes that $300 per ton is a reasonable estimate of future scrap prices, taking into consideration the cyclicality of the nature of future demand for scrap steel. Although the Company believes that the assumptions used to determine the scrap rate are reasonable and appropriate, such assumptions are highly subjective, in part, because of the cyclical nature of future demand for scrap steel. In connection with the 2018 debt refinancing, the Company undertook to seek to refinance two of its 13,100 TEU vessels, the Hyundai Honour and Hyundai Respect , which refinancing was completed on April 12, 2019 through a sale and leaseback arrangement with a term of five years, at the end of which the Company will reacquire the vessels for an aggregate amount of $52.6 million or earlier, at the Company’s option, for a purchase price set forth in the agreement. The net proceeds amounting to $144.8 million were applied pro rata to partially repay the existing credit facilities (Club Facility, Credit Suisse Facility, Citibank $114 mil. Facility and Citibank $123.9 mil. Facility) secured by mortgages on such vessels. This arrangement was recorded as a failed sale and leaseback by the Company with the received proceeds recognized as a financial liability. The carrying value of these vessels amount to $271.9 million as of December 31, 2019. On May 12, 2020, the Company refinanced the existing leaseback obligation related to the vessels Hyundai Honour and Hyundai Respect with a new sale and leaseback arrangement amounting to $139.1 million with a four years term, at the end of which the Company will reacquire these vessels for an aggregate amount of $36.0 million or earlier, at the Company’s option, for a purchase price set forth in the agreement. The Company incurred early termination fees amounting to $0.5 million, which are presented under "Other finance expenses" in the consolidated statements of operations. This new arrangement did not qualify for a sale of the vessels and the net proceeds were recognized as a financial leaseback liability. The carrying value of these vessels amount to $271.3 million as of December 31, 2020. This agreements contains financial covenant requiring to maintain minimum aggregate fair market value of the vessels Hyundai Honour and Hyundai Respect of at least 120% of the principal balance and minimum liquidity of $500 thousands per vessels tested semi-annually. Additionally, Danaos should be in compliance with the covenants described under “The Refinancing and the 2018 Credit Facilities” section below. The scheduled leaseback instalments subsequent to December 31, 2020 are as follows (in thousands): Instalments due by period ended: December 31, 2021 $ 30,916 December 31, 2022 30,915 December 31, 2023 30,915 Until May 2024 46,249 Total leaseback instalments 138,995 Less: Imputed interest (15,605) Total leaseback obligation 123,390 Less: Deferred finance costs, net (3,290) Less: Current leaseback obligation (24,515) Leaseback obligation, net of current portion $ 95,585 |
Deferred Charges, Net
Deferred Charges, Net | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Charges, Net | |
Deferred Charges, Net | 5. Deferred Charges, Net Deferred charges, net consisted of the following (in thousands): Drydocking and Special Survey Costs As of January 1, 2018 $ 8,962 Additions 13,306 Amortization (9,237) As of December 31, 2018 $ 13,031 Additions 7,157 Amortization (8,733) As of December 31, 2019 $ 11,455 Additions 16,916 Amortization (11,032) As of December 31, 2020 $ 17,339 The Company follows the deferral method of accounting for drydocking and special survey costs in accordance with accounting for planned major maintenance activities, whereby actual costs incurred are deferred and amortized on a straight‑line basis over the period until the next scheduled survey, which is two and a half years. If special survey or drydocking is performed prior to the scheduled date, the remaining unamortized balances are immediately written off. Furthermore, when a vessel is drydocked for more than one reporting period, the respective costs are identified and recorded in the period in which they were incurred and not at the conclusion of the drydocking. |
Investments in affiliates
Investments in affiliates | 12 Months Ended |
Dec. 31, 2020 | |
Investments in affiliates | |
Investments in affiliates | 6. Investments in affiliates In August 2015, an affiliated company Gemini Shipholdings Corporation (“Gemini”) was formed by the Company and Virage International Ltd. (“Virage”), a company controlled by the Company’s largest shareholder. Gemini acquired a 100% interest in two entities with finance leases in accordance with ASC 842 for the container vessels Suez Canal and Genoa and two entities that own the container vessels Catherine C and Leo C . In August 2019, a subsidiary of Gemini acquired a 8,533 TEU container vessel built in 2006 renamed to Belita . Gemini financed these acquisitions with the assumption of finance lease obligations of $35.4 million, $30.0 million of borrowings under secured loan facilities and an aggregate of $47.4 million from equity contributions from the Company and Virage, which subscribed in cash for 49% and 51%, respectively, of Gemini’s issued and outstanding share capital. As of December 31, 2020, Gemini consolidated its wholly owned subsidiaries listed below: Company Vessel Name Year Built TEU Date of vessel delivery Averto Shipping S.A. Suez Canal 5,610 July 20, 2015 Sinoi Marine Ltd. Genoa 5,544 August 2, 2015 Kingsland International Shipping Limited Catherine C 6,422 September 21, 2015 Leo Shipping and Trading S.A. Leo C 6,422 February 4, 2016 Springer Shipping Co Belita 8,533 August 26, 2019 The Company has determined that Gemini is a variable interest entity of which the Company is not the primary beneficiary, and as such, this affiliated company is accounted for under the equity method and recorded under “Equity income on investments” in the Consolidated Statements of Operations. The Company does not guarantee the debt of Gemini and its subsidiaries and has the right to purchase all of the beneficial interest in Gemini that it does not own for fair market value at any time after December 31, 2018, to the extent permitted under its credit facilities. The net assets of Gemini total $31.2 million and $18.3 million as of December 31, 2020 and December 31, 2019, respectively. The Company’s exposure is limited to its share of the net assets of Gemini proportionate to its 49% equity interest in Gemini. A condensed summary of the financial information for equity accounted investments 49% owned by the Company shown on a 100% basis are as follows (in thousands): 2020 2019 2018 Current assets $ 11,524 $ 6,242 Non-current assets $ 69,149 $ 69,740 Current liabilities $ 7,585 $ 9,892 Long-term liabilities $ 41,920 $ 47,795 Net operating revenues $ 31,844 $ 20,264 $ 18,885 Net income $ 12,873 $ 3,268 $ 2,787 |
Other Non-current Assets
Other Non-current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Non-current Assets | |
Other Non-current Assets | 7. Other Non‑current Assets Other non‑current assets consisted of the following (in thousands): 2020 2019 Available for sale securities: ZIM notes, net $ 43,559 $ 20,078 HMM notes, net 19,328 11,377 Equity participation ZIM 75 — Advances for vessels additions — 18,800 Advances for vessels acquisition — 2,507 Other assets 20,421 29,577 Total $ 83,383 $ 82,339 a. ZIM In July 2014, after the charter restructuring agreements with ZIM, the Company obtained approximately 7.4% equity participation in ZIM and interest bearing unsecured ZIM notes maturing in 2023, consisting of $8.8 million Series 1 Notes and $41.1 million of Series 2 Notes. ZIM notes were originally classified as held to maturity securities and recorded at amortized costs less other than temporary impairment since initial recognition. The Company recognized $1.8 million, $1.6 million and $1.4 million in relation to their fair value unwinding of ZIM notes in the Consolidated Statements of Operations under “Interest income” for years ended December 31, 2020, 2019 and 2018, respectively. Furthermore, for each of the years ended December 31, 2020, 2019 and 2018, the Company recognized in the Consolidated Statements of Operations under “Interest income”, a non-cash interest income of $0.9 million in relation to ZIM notes, which is accrued quarterly with deferred cash payment on maturity. The Company classifies its equity participation in ZIM at cost as the Company does not have the ability to exercise significant influence. In 2016, the Company tested for impairment of its equity participation in ZIM based on the existence of triggering events that indicate the interest in equity may have been impaired and recorded an impairment loss of $28.7 million, thus reducing its book value to nil. In March 2020, the Company increased its equity participation in ZIM to approximately 10.2% by acquisition of additional shares for $75 thousand. As of December 31, 2020, the Company owned 10,186,950 ordinary shares of ZIM. Furthermore, in July 2014, an amount of $39.1 million, which represents the additional compensation received from ZIM, was recorded as unearned revenue representing compensation to the Company for the future reductions in the daily charter rates payable by ZIM under its time charters, expiring in 2020 or 2021, for six of the Company’s vessels. This amount is recognized in the Consolidated Statements of Operations under “Operating revenues” over the remaining life of the respective time charters. For each of the years ended December 31, 2020, 2019 and 2018, respectively, the Company recorded an amount of $5.4 million, $6.0 million and $6.0 million of unearned revenue amortization in “Operating revenues”. As of December 31, 2020, the outstanding balances of the current and non-current portion of unearned revenue in relation to ZIM amounted to $1.1 million and nil, respectively. As of December 31, 2019, the corresponding outstanding balances of the current and non-current portion of unearned revenue amounted to $5.4 million and $1.1 million, respectively. Refer to Note 13, “Financial Instruments—Fair value of Financial Instruments”. b. HMM In July 2016, after the charter restructuring agreements with HMM, the Company obtained interest bearing senior unsecured HMM notes consisting of $32.8 million Loan Notes 1 maturing in July 2024 and $6.2 million Loan Notes 2 maturing in December 2022 and 4.6 million HMM shares. The HMM notes were originally classified as held to maturity securities and recorded at amortized costs less other than temporary impairment since initial recognition. Based on the management’s intention, the HMM shares were held principally for the purpose of the resale in the near term and were classified as trading securities. The Company also tests periodically for impairment of its investments in debt securities based on the existence of triggering events that indicate debt instruments may have been impaired. On September 1, 2016, the Company sold all HMM shares and the net proceeds were used to repay outstanding debt obligations. Furthermore, for the years ended December 31, 2020, 2019 and 2018, the Company recognized $2.1 million, $1.9 million and $1.8 million, respectively, of non-cash interest income and fair value unwinding of HMM notes under “Interest income” in the Consolidated Statement of Operations. On July 18, 2016, the Company recognized unearned revenue of $75.6 million representing compensation to the Company for the future reductions in the daily charter rates payable by HMM under the time charter agreements. The amortization of unearned revenue is recognized in the Consolidated Statement of Operations under “Operating revenues” over the remaining life of the respective charters. For the years ended December 31, 2020, December 31, 2019 and December 31, 2018, the Company recorded an amount of $8.2 million, $8.2 million and $8.8 million, respectively, of unearned revenue amortization. As of December 31, 2020, the outstanding balances of the current and non-current portion of unearned revenue in relation to HMM amounted to $8.2 million and $18.9 million, respectively. As of December 31, 2019, the corresponding outstanding balances of the current and non-current portion of unearned revenue amounted to $8.2 million and $27.0 million, respectively. Refer also to Note 13, “Financial Instruments–Fair value of Financial Instruments”. c. Transfer to Available for sale category On March 28, 2017, the Company sold $13.0 million principal amount of HMM Loan Notes 1 maturing in July 2024. The sale of these notes resulted in a transfer of all remaining held to maturity HMM and ZIM notes into the available for sale securities at fair value. ZIM and HMM unsecured debt securities are not publicly traded, are infrequently traded over the counter by certain brokers and have no readily determinable market value or credit ratings. The unrealized loss was primarily caused by challenging business environment faced by container shipping industry, which affected profitability and liquidity of ZIM and HMM. The Company collects cash interest applicable to ZIM securities and rentals on the Company's vessels leased to ZIM and HMM on a regular basis, in accordance with the contractual agreements. The contractual terms of ZIM and HMM debt securities do not permit ZIM or HMM to settle the debt securities at a price less than the amortized cost basis on the investments. The Company currently does not expect ZIM or HMM to settle the debt securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell ZIM and HMM debt securities and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis. These securities are in continuous unrealized loss position for a period exceeding twelve months as of December 31, 2020 and December 31, 2019. The following tables summarizes the unrealized positions for available-for-sale debt securities as of December 31, 2020 and December 31, 2019 (in thousands): Amortized cost Description of securities basis Fair value Unrealized loss December 31, 2020 ZIM notes $ 49,871 $ 43,559 $ (6,312) HMM notes 24,607 19,328 (5,279) Total $ 74,478 $ 62,887 $ (11,591) December 31, 2019 ZIM notes $ 47,171 $ 20,078 $ (27,093) HMM notes 22,508 11,377 (11,131) Total $ 69,679 $ 31,455 $ (38,224) Unrealized loss on available for sale securities Balance as of January 1, 2018 $ (26,607) Unrealized loss on available for sale securities (9,771) Balance as of December 31, 2018 (36,378) Unrealized loss on available for sale securities (1,846) Balance as of December 31, 2019 $ (38,224) Unrealized gain on available for sale securities 26,633 Balance as of December 31, 2020 $ (11,591) Other assets mainly include non-current assets related to straight-lining of the Company’s revenue amounting to $20.0 million and $29.6 million as of December 31, 2020 and December 31, 2019, respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities | |
Accrued Liabilities | 8. Accrued Liabilities Accrued liabilities consisted of the following (in thousands): 2020 2019 Accrued payroll $ 1,008 $ 809 Accrued interest 2,137 3,910 Accrued dry-docking expenses 2,177 — Accrued expenses 5,638 3,808 Total $ 10,960 $ 8,527 Accrued expenses mainly consisted of accruals related to the operation of the Company’s fleet and other expenses as of December 31, 2020 and December 31, 2019. |
Lease Arrangements
Lease Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Lease Arrangements | |
Lease Arrangements | 9. Lease Arrangements Charters‑out As of December 31, 2020, the Company generated operating revenues from its 60 vessels on time charters or bareboat charter agreements, with remaining terms ranging from less than one year to April 2028. Under the terms of the charter party agreements, most charterers have options to extend the duration of contracts ranging from less than one year to three years after the expiration of the contract. The Company determines fair value of its vessels at the lease commencement date and at the end of lease term for lease classification with the assistance from valuations obtained by third party independent shipbrokers. The Company manages its risk associated with the residual value of its vessels after the expiration of the charter party agreements by seeking multi-year charter arrangements for its vessels. The future minimum rentals, expected to be earned on non-cancellable time charters consisted of the following as of December 31, 2020 (in thousands): 2021 $ 478,692 2022 310,499 2023 190,308 2024 57,070 2025 19,571 2026 and thereafter 42,642 Total future rentals $ 1,098,782 Rentals from time charters are not generally received when a vessel is off‑hire, including time required for normal periodic maintenance of the vessel. In arriving at the future minimum rentals, an estimated time off‑hire to perform periodic maintenance on each vessel has been deducted, although there is no assurance that such estimate will be reflective of the actual off‑hire in the future. |
Long-Term Debt, net
Long-Term Debt, net | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Debt, net. | |
Long-Term Debt, net | 10. Long‑Term Debt, net Long‑term debt consisted of the following (in thousands): Balance as of Balance as of December 31, December 31, Credit Facility 2020 2019 The Royal Bank of Scotland $475.5 mil. Facility $ 433,412 $ 458,604 HSH Nordbank AG—Aegean Baltic Bank—Piraeus Bank $382.5 mil. Facility 351,759 372,340 Citibank $114 mil. Facility 63,061 74,402 Credit Suisse $171.8 mil. Facility 101,254 115,759 Citibank—Eurobank $37.6 mil. Facility 17,669 27,455 Club Facility $206.2 mil. 124,427 143,389 Sinosure Cexim—Citibank—ABN Amro $203.4 mil. Facility 20,340 40,680 Citibank $123.9 mil. Facility 85,280 88,793 Citibank $120 mil. Facility 93,742 100,245 Macquarie Bank $58 mil. Facility 56,000 — SinoPac $13.3 mil. Facility 12,800 — Fair value of debt (14,304) (19,994) Comprehensive Financing Plan exit fees accrued 22,660 22,139 Total long-term debt $ 1,368,100 $ 1,423,812 Less: Deferred finance costs, net (25,093) (33,476) Less: Current portion, net (155,662) (119,673) Total long-term debt net of current portion and deferred finance cost $ 1,187,345 $ 1,270,663 Each of the credit facilities are collateralized by first and second preferred mortgages over the vessels financed, general assignment of all hire freights, income and earnings, the assignment of their insurance policies, as well as any proceeds from the sale of mortgaged vessels, the Company’s investments in ZIM and Hyundai Merchant Marine securities, stock pledges and benefits from corporate guarantees. As of December 31, 2020, fifty-eight of the Company's vessels, excluding the Hyundai Honour and Hyundai Respect , having a net carrying value of $2,208.6 million as of December 31, 2020, were subject to first and second preferred mortgages as collateral to the Company's credit facilities. As of December 31, 2020, there was no remaining borrowing availability under the Company’s credit facilities. The weighted average interest rate on long‑term borrowings (including leaseback obligations) for the years ended December 31, 2020, 2019 and 2018 was 4.6%, 6.1% and 4.3%, respectively. Total interest paid (including interest on leaseback obligations) during the years ended December 31, 2020, 2019 and 2018 was $35.2 million, $54.9 million and $71.9 million, respectively. The total amount of interest cost incurred and expensed (including interest on leaseback obligations) in 2020 was $36.7 million (2019: $55.2 million, 2018: $70.7 million). 2020 Credit Facilities On April 8, 2020, the vessel owning companies Rewarding International Shipping Inc. and Blackwell Seaways Inc. entered into a loan agreement with Macquarie Bank for an amount up to $24.0 million drawn down in full on April 9, 2020 (“the First Tranche”). The loan was used to partially finance the acquisition costs of two newly acquired vessels Niledutch Lion and Phoebe. Additionally, on December 11, 2020, the vessel owning companies Oceancarrier (No.2) Corp. and Oceancarrier (No.3) Corp. drawn down another tranche of the loan amounting to $34.0 million (“the Second Tranche”), which was used to partially finance the acquisition costs of another two newly acquired vessels Bremen (ex CPO Bremen) and C Hamburg (ex CPO Hamburg) owned by these vessel owning companies. The loan facility is secured by the liens on these vessels and is guaranteed by Danaos. The loan bears interest at LIBOR plus 3.9% margin for the First Tranche and LIBOR plus 3.75% for the Second Tranche. The First Tranche is repayable in nineteen quarterly instalments starting from September 30, 2020 over a five year period with a balloon payment at maturity amounting to $10.4 million. The Second Tranche is repayable in nineteen quarterly instalments starting from March 31, 2021 over a five year period with a balloon payment at maturity amounting to $15.2 million. This facility contains quarterly financial covenant requiring the vessel owning companies to maintain maximum loan to fair value of the collateralized vessels cover of 65% or to provide additional securities, if necessary and to maintain minimum working capital of $1 million per vessel. Additionally, Danaos should be in compliance with the covenants described under “The Refinancing and the 2018 Credit Facilities” section below. On July 2, 2020, the Company’s subsidiary Oceancarrier (No.1) Corp. drew down a loan with SinoPac, which is guaranteed by Danaos, for an amount of $13.3 million. The loan was used to partially finance the acquisition costs of the newly acquired vessel Charleston (ex SM Charleston) owned by this vessel owning company, a lien on which vessel secures this loan agreement. The loan bears interest at LIBOR plus 3.75% margin and is repayable in nineteen quarterly instalments starting three months after the drawn down over a five year period of the loan with a balloon payment at maturity amounting to $3.8 million. This facility contains financial covenant requiring Oceancarrier (No.1) to maintain minimum collateral of the aggregate fair market value of the vessel Charleston (ex SM Charleston) or other collateral, if necessary, of at least 120% of the loan balance tested semi-annually. The Refinancing and the 2018 Credit Facilities The Company entered into a debt refinancing agreement with certain of its lenders holding debt of $2.2 billion maturing by December 31, 2018, for a debt refinancing (the “Refinancing”) which was consummated on August 10, 2018 (the “Closing Date”) that superseded, amended and supplemented the terms of each of the Company's then-existing credit facilities (other than the Sinosure-CEXIM-Citibank-ABN Amro credit facility which is not covered thereby). The Refinancing provided for, among other things, the issuance of 7,095,877 new shares of common stock to certain of the Company's lenders (which represented 47.5% of the Company's outstanding common stock immediately after giving effect to such issuance and diluted existing shareholders ratably), a principal amount debt reduction of approximately $551 million, revised amortization schedules, maturities, interest rates, financial covenants, events of defaults, guarantee and security packages and $325.9 million of new debt financing from one of the Company’s lenders–Citibank (the “Citibank–New Money”). The Company’s largest stockholder, Danaos Investment Limited as Trustee of the 883 Trust (“DIL”), contributed $10 million to the Company on the Closing Date, for which DIL did not receive any shares of common stock or other interests in the Company. The maturities of most of the new loan facilities covered by this debt refinancing were extended by five years to December 31, 2023 (or, in some cases, June 30, 2024). In addition, the Company agreed to make reasonable efforts to source investment commitment for new shares of common stock with net proceeds not less than $50 million in aggregate no later than 18 months after the Closing Date ($10 million of which is to be underwritten by DIL). Danaos sold 9,418,080 shares of common stock in the public offering completed in December 2019 raising aggregate proceeds net of underwriting discounts of $54.4 million. Refer also to Note 18, "Stockholder's Equity". As part of the Refinancing the Company entered into new credit facilities for an aggregate principal amount of approximately $1.6 billion due by December 31, 2023 through an amendment and restatement or replacement of existing credit facilities. The following are the new term loan credit facilities (the "2018 Credit Facilities"): (i) a $475.5 million credit facility provided by the Royal Bank of Scotland (the “RBS Facility”), which refinanced the prior Royal Bank of Scotland credit facilities (ii) a $382.5 million credit facility provided by HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank (the “HSH Facility”), which refinanced the prior HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank credit facilities (iii) a $114.0 million credit facility provided by Citibank (the “Citibank $114 mil. Facility”), which refinanced the prior Citibank credit facility (iv) a $171.8 million credit facility provided by Credit Suisse (the “Credit Suisse $171.8 mil. Facility”), which refinanced the prior Credit Suisse credit facility (v) a $37.6 million credit facility provided by Citibank-Eurobank (the “Citibank-Eurobank $37.6 mil. Facility)”), which refinanced the prior Citibank–Eurobank credit facility (vi) a $206.2 million credit facility provided by Citibank-Credit Suisse-Sentina (the “Club Facility $206.2 mil.”), which refinanced the prior EnTrustPermal-Credit Suisse-CitiGroup Club facility (vii) a $120.0 million credit facility provided by Citibank (the “Citibank $120 mil. Facility”), which refinanced the prior ABN Amro–Bank of America Merrill Lynch–Burlington Loan Management–National Bank of Greece facilities (viii) a $123.9 million credit facility provided by Citibank (the “Citibank $123 mil. Facility”), which refinanced the prior Deutsche Bank facility Interest and Fees The interest rate payable under the 2018 Credit Facilities (which does not include the Sinosure-CEXIM -Citibank-ABN Amro credit facility) is LIBOR+2.50% (subject to a 0% floor), with subordinated tranches of two credit facilities incurring additional PIK interest of 4.00%, compounded quarterly, payable in respect of $282 million principal related to the RBS Facility and HSH Facility, which tranches have maturity dates of June 30, 2024. The Company was required to pay a cash amendment fee of $69.2 million in the aggregate, out of which $14.8 million, $30.5 million and $23.9 million was paid in cash in the years ended December 31, 2020, 2019 and 2018, respectively. The amount of $14.8 million was presented under “Other current liabilities” as of December 31, 2019. Of the cash amendment fee, $17.2 million was deferred and is amortized over the life of the respective credit facilities with the effective interest method and $52.0 million was expensed to the consolidated statement of operations in the year ended December 31, 2018. The Company was also required to issue 1,052,179 shares of common stock as part of the amendments fees on the Closing Date, or $25.0 million fair value in the aggregate. Of this amount, recognition of $18.1 million was deferred and is amortized over the life of the respective credit facilities with the effective interest method and $6.9 million was expensed in the accompanying consolidated statements of operations in the year ended December 31, 2018. The fair value of the shares issued at the Closing Date are based on a Level 1 measurement of the share’s price, which was $23.8 (as adjusted for the 1-for-14 reverse stock split the Company effected on May 2, 2019) as of August 10, 2018. The Company incurred $51.3 million of professional fees related to the refinancing discussions with its lenders reported under “Other income/(expenses), net” in the accompanying consolidated statements of operations for the years ended December 31, 2018. Additionally, the Company deferred $11.7 million of professional fees related to the Citibank facilities and is amortized over the life of the respective credit facilities. Covenants, Events of Defaults, Collaterals and Guarantees The 2018 Credit Facilities contain financial covenants requiring the Company to maintain: (i) minimum collateral to loan value coverage on a charter-free basis increasing from 57.0% as of December 31, 2018 to 100% as of September 30, 2023 and thereafter, (ii) minimum collateral to loan value coverage on a charter-attached basis increasing from 69.5% as of December 31, 2018 to 100% as of September 30, 2023 and thereafter, (iii) minimum liquidity of $30 million throughout the term of the 2018 Credit Facilities, (iv) maximum consolidated net leverage ratio, declining from 7.50x as of December 31, 2018 to 5.50x as of September 30, 2023 and thereafter, (v) minimum interest coverage ratio of 2.50x throughout the term of the 2018 Credit Facilities and (vi) minimum consolidated market value adjusted net worth increasing from negative $510 million as of December 31, 2018 to $60 million as of September 30, 2023 and thereafter. The 2018 Credit Facilities contain certain restrictive covenants and customary events of default, including those relating to cross-acceleration and cross-defaults to other indebtedness, non-compliance, or repudiation of security documents, material adverse changes to the Company’s business, the Company’s common stock ceasing to be listed on the NYSE (or another recognized stock exchange), foreclosure on a vessel in the Company’s fleet, a change in control of the Manager, a breach of the management agreement by the Manager and a material breach of a charter by a charterer or cancellation of a charter (unless replaced with a similar charter acceptable to the lenders) for the vessels securing the respective new credit facilities. Exit Fee As of December 31, 2020 and 2019, the Company has an accrued Exit Fee of $22.7 million and $22.1 million, respectively, relating to its debt facilities and is reported under “Long-term debt, net” in the consolidated Balance Sheets. The payment of the exit fees accrued under the long-term debt prior to the debt refinancing shall be postponed on the earlier of maturity, acceleration or prepayment or repayment in full of the amended facilities or the relevant facility refinancing. The exit fees will accrete in the consolidated statement of operations of the Company over the life of the respective facilities covered by the Refinancing (which does not include the Sinosure-CEXIM -Citibank-ABN Amro credit facility) up to the agreed full exit fees payable amounting to $24.0 million. Sinosure-CEXIM -Citibank-ABN Amro credit facility On the Closing Date the Company amended and restated the Sinosure-CEXIM -Citibank-ABN Amro credit facility, dated as of February 21, 2011, primarily to align its financial covenants with those contained in the new credit facilities and provide second lien collateral to lenders under certain of the 2018 Credit Facilities. Principal Payments The Sinosure–Cexim–Citibank–ABN Amro credit facility provides for semi-annual amortization payments and the 2020 Credit Facilities provide for quarterly amortization payments. The 2018 Credit Facilities provide for quarterly fixed and variable amortization payments, together representing approximately 85% of actual free cash flows from the relevant vessels securing such credit facilities, subject to certain adjustments. The 2018 Credit Facilities have maturity dates of December 31, 2023 (or in some cases as indicated below, June 30, 2024). The scheduled debt maturities of total long-term debt subsequent to December 31, 2020 are as follows (in thousands): Fixed principal Variable principal Final Total Payments due by period ended repayments repayments payments * principal payments December 31, 2021 $ 132,003 $ 23,943 — $ 155,946 December 31, 2022 100,823 — 100,823 December 31, 2023 83,594 $ 693,336 776,930 December 31, 2024 6,400 287,095 293,495 December 31, 2025 3,200 29,350 32,550 Total long-term debt $ 326,020 $ 23,943 $ 1,009,781 $ 1,359,744 * The final payments include the unamortized remaining principal debt balances under the 2018 Credit Facilities, as such amount will be determinable following the fixed amortization. As mentioned above, the Company is also subject to quarterly variable principal amortization based on actual free cash flows, which are included under “Final payments” in this table. Accounting for the Restructuring Agreement The Company performed an accounting analysis on a lender by lender basis to determine which accounting guidance applied to each of the amendments to its existing credit facilities as part of the 2018 Refinancing. The following guidance was used to perform the analysis: (i) As set forth in ASC 470-60, “Accounting by Debtors and Creditors for Troubled Debt Restructurings” troubled debt restructuring (“TDR”) accounting is required when the debtor is experiencing financial difficulty and the creditor has granted a concession. A concession is granted when the effective borrowing rate on the restructured debt is less than the effective borrowing rate on the original debt. The application of TDR accounting requires a comparison of the recorded value of each debt instrument prior to restructuring to the sum of the undiscounted future cash flows to be received by a creditor under the newly restructured debt instrument. Interest expense in future periods is determined by the effective interest rate required to discount the newly restructured future cash flows to equal the recorded value of the debt instrument without regard to how the parties allocated these cash flows to principal and interest in the restructured agreement. In cases in which the recorded value of the debt instrument exceeds the sum of undiscounted future cash flows to be received under the restructured debt instrument, the recorded value is reduced to the sum of undiscounted future cash flows, and a gain is recorded. In this instance, no future interest expense will be recorded on the affected facilities, as the adjusted recorded value and the undiscounted future cash flows are equal and the effective interest rate is zero. (ii) For lenders on which the Company concluded that the above changes to the terms of long-term debt do not constitute a troubled debt restructuring as no concession has been granted, the Company applied the guidance in ASC 470-50, Modifications and Extinguishments. The accounting treatment is determined by whether (1) the lender (creditor) remains the same and (2) terms of the new debt and original debt are substantially different. The new debt and the old debt are considered “substantially different” pursuant to ASC 470-50 when the present value of the cash flows under the terms of the new debt instrument is at least 10% different from the present value of the remaining cash flows under the terms of the original instrument. If the original and new debt instruments are substantially different, the original debt is derecognized and the new debt should be initially recorded at fair value, with the difference recognized as an extinguishment gain or loss. Based on the analysis, the Company concluded for the lenders that participated in both the credit facilities existing immediately prior to the 2018 Refinancing and the 2018 Credit Facilities, the following accounting: Troubled Debt Restructuring Prior to the finalization of the Refinancing, the Company concluded that it was experiencing financial difficulty and that certain of the lenders granted a concession (as part of the Refinancing). The Company was experiencing financial difficulty primarily as a result of the projected cash flows not being sufficient to service the balloon payment due as of December 31, 2018 without restructuring and the Company was not able to obtain funding from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt. As a result, the following accounting has been applied at the Closing Date: (i) As of the Closing Date, the outstanding balance of HSH Facility was $639.2 million. In exchange for reduction of principal of $251.0 million, the lenders received a total of 3.5 million shares of common stock with a fair value of $83.9 million, resulting in a net concession of $167.1 million. Accumulated accrued interest of $129.3 million was recognized using the Libor rate of 2.34% as of August 10, 2018. The TDR accounting guidance requires the Company to record the value of the new debt to its restructured undiscounted cash flows over the life of the loan, including cash flows associated with the remaining scheduled interest and principal payments. In cases in which the recorded value of the debt instrument exceeds the sum of undiscounted future cash flows to be received under the restructured debt instrument, the recorded value is reduced to the sum of undiscounted future cash flows, and a gain is recorded. For the HSH Facility, the total undiscounted future cash flows total $518.6 million, which results in a gain of $36.6 million. The amendment fees to be paid to HSH Facility lenders of $9.5 million were recorded in the consolidated statement of operations and reduced the net gain on debt extinguishment in the year ended December 31, 2018. (ii) As of the Closing Date, the outstanding balance of RBS Facility was $660.9 million. In exchange for reduction of principal of $179.2 million, the lender received a total of 2.5 million shares of common stock with a fair value of $59.9 million, resulting in a net concession of $119.3 million and accumulated accrued interest of $119.3 million as of August 10, 2018. The TDR accounting guidance requires the Company to record the value of the new debt to its restructured undiscounted cash flows over the life of the loan, including cash flows associated with the remaining scheduled interest and principal payments not to exceed the carrying amount of the original debt. For the RBS Facility, the undiscounted cash flows exceed the recorded value of the modified debt, and as such, the modified and new debt is accreted up to its maturity value using the effective interest rate inherent in the restructured cash flows. The amendment fees to be paid to RBS of $9.3 million were deferred and is recognized through the consolidated statement of operations using the effective interest method. Following the issuance of the shares of common stock, HSH and RBS were considered related parties. In 2020, HSH sold the shares of common stock of the Company. On October 12, 2020, the Company repurchased 2,517,013 shares from RBS. The fair value of the shares issued at the Closing Date are based on a Level 1 measurement of the share’s price, which was $23.8 (as adjusted for the 1-for-14 reverse stock split the Company effected on May 2, 2019) as of August 10, 2018. Modification and Extinguishment Accounting Based on the accounting analysis performed, the Company concluded that: (i) As of the Closing Date, the outstanding balance for the Credit Suisse Facility, the Credit Suisse and Sentina portions of the New Club Facility and the Eurobank portion of the Citibank-Eurobank Facility was $173.5 million, $125.6 million and $7.2 million, respectively. The present value of the cash flows under the Credit Suisse facilities and Sentina portion of the New Club Facility and Eurobank portion of the Citibank–Eurobank Facility, as amended by the debt refinancing, were not substantially different from the present value of the remaining cash flows under the terms of the original instruments prior to the debt refinancing, and, as such, were accounted for the debt refinancing as a modification. Accordingly, no gain or loss was recorded and a new effective interest rate was established based on the carrying value of the long-term loan prior to the debt refinancing becoming effective and the revised cash flows pursuant to the debt refinancing, including the fair value of the shares issued to the lender as part of the amendment fees. Total amendment fees paid in cash and shares to the Credit Suisse Facility, New Club Facility and Eurobank portion of the Citibank–Eurobank Facility were $15.1 million, $10.9 million and $0.1 million, respectively, and are deferred over the life of the facilities and recognized through the new effective interest method. (ii) The present value of the cash flows for all of the Existing Citibank facilities amounting to $152.9 million plus the Citibank-New Money amounting to $325.9 million, was substantially different from the present value of the remaining cash flows under the terms of the original instrument prior to the debt refinancing, and, as such, accounted for the debt refinancing as an extinguishment. Accordingly, we derecognized the carrying value of the prior Citibank debt facilities and recorded the refinanced debt at fair value totaling $448.2 million. Total new fees of $49.5 million were recorded directly in the consolidated statement of operations under the gain on debt extinguishment in the year ended December 31, 2018. The fair value of the new Citibank facilities was determined by the Company through an independent valuation using an issue date, risk adjusted market interest rate of 7.15% per annum, similar to the market yield for unsecured high yield bonds to the shipping companies, and considered to be a Level 2 input in the ASC 820 fair value hierarchy. The outstanding principal and related exit fee payable for the Deutsche Bank Facility, the EnTrustPermal portion of the Club Facility and the ABN Amro-Bank of America Merrill Lynch-Burlington Loan Management-National Bank of Greece Facility (“Other facilities”) totaling $450.8 million were extinguished with the proceeds from the Citibank–New Money amounting to $325.9 million and with corporate cash amounting to $12.0 million, resulting in a net gain on debt extinguishment of $89.3 million in the year ended December 31, 2018. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions | |
Related Party Transactions | 11. Related Party Transactions Management Services: Pursuant to a ship management agreement between each of the vessel owning companies and Danaos Shipping Company Limited (the “Manager”), the Manager acts as the fleet’s technical manager responsible for (i) recruiting qualified officers and crews, (ii) managing day to day vessel operations and relationships with charterers, (iii) purchasing of stores, supplies and new equipment for the vessels, (iv) performing general vessel maintenance, reconditioning and repair, including commissioning and supervision of shipyards and subcontractors of drydock facilities required for such work, (v) ensuring regulatory and classification society compliance, (vi) performing operational budgeting and evaluation, (vii) arranging financing for vessels, (viii) providing accounting, treasury and finance services and (ix) providing information technology software and hardware in the support of the Company’s processes. The Company’s largest shareholder controls the Manager. On August 10, 2018, the term of the Company’s management agreement with the Manager was extended until December 31, 2024. The Manager agreed to apply all or some of the amount of DIL’s unfulfilled obligations, if any, under the Backstop Agreement as a credit towards any fees payable by the Company to the Manager. Pursuant to the management agreement, the management fees are as follows for the years presented in the Consolidated Statements of Operations: i) a daily management fee of $850, ii) a daily vessel management fee of $425 for vessels on bareboat charter and iii) a daily vessel management fee of $850 for vessels on time charter. Additionally, the fee of 1.25% on gross freight, charter hire, ballast bonus and demurrage with respect to each vessel in the fleet and the fee of 0.5% based on the contract price of any vessel bought and sold by the Manager on the Company’s behalf are due to the Manager. Management fees in 2020 amounted to approximately $17.7 million (2019: $16.8 million, 2018: $16.8 million), which are presented under “General and administrative expenses” in the Consolidated Statements of Operations. Commissions to the Manager in 2020 amounted to approximately $5.7 million (2019: $5.3 million, 2018: $5.4 million), which are presented under “Voyage expenses” in the Consolidated Statements of Operations. Commission of 0.5% on the contract price of newly acquired vessels in 2020 amounting to $0.7 million was capitalized to the vessels cost for the year ended December 31, 2020. The Company pays advances on account of the vessels’ operating expenses. These prepaid amounts are presented in the Consolidated Balance Sheets under “Due from related parties” totaling $20.4 million and $20.5 million as of December 31, 2020 and 2019, respectively. The Company employs its executive officers. The executive officers received an aggregate of €1.5 million ($1.8 million), €1.5 million ($1.7 million), €2.7 million ($3.2 million), including cash bonuses aggregating €1.2 million ($1.4 million) in cash compensation for the years ended December 31, 2020, 2019 and 2018, respectively. An amount of $0.2 million was due to executive officers and is presented under “Accounts payable” in the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019. The Company recognized non-cash share-based compensation expense in respect of awards to executive officers of $1.0 million, $3.6 million and $1.0 million in the years ended December 31, 2020, 2019, and 2018, respectively. Dr. John Coustas, the Chief Executive Officer of the Company, is a member of the Board of Directors of The Swedish Club, the primary provider of insurance for the Company, including a substantial portion of its hull & machinery, war risk and protection and indemnity insurance. During the years ended December 31, 2020, 2019 and 2018 the Company paid premiums to The Swedish Club of $4.3 million, $4.4 million and $3.9 million, respectively, which are presented under “Vessel operating expenses” in the Consolidated Statements of Operations. As of December 31, 2020 and 2019, the Company did not have any outstanding balance to The Swedish Club. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Taxes | |
Taxes | 12. Taxes Under the laws of the countries of the Company’s ship owning subsidiaries’ incorporation and/or vessels’ registration, the Company’s ship operating subsidiaries are not subject to tax on international shipping income, however, they are subject to registration and tonnage taxes, which have been included under “Vessel operating expenses” in the accompanying Consolidated Statements of Operations. Pursuant to the U.S. Internal Revenue Code (the “Code”), U.S.‑source income from the international operation of ships is generally exempt from U.S. tax if the company operating the ships meets certain requirements. Among other things, in order to qualify for this exemption, the company operating the ships must be incorporated in a country which grants an equivalent exemption from income taxes to U.S. corporations. All of the Company’s ship‑operating subsidiaries satisfy these initial criteria. In addition, these companies must be more than 50% owned by individuals who are residents, as defined, in the countries of incorporation or another foreign country that grants an equivalent exemption to U.S. corporations. These companies satisfied the more than 50% beneficial ownership requirement for 2020. In addition, should the beneficial ownership requirement not be met, the management of the Company believes that by virtue of a special rule applicable to situations where the ship operating companies are beneficially owned by a publicly traded company like the Company, the more than 50% beneficial ownership requirement can also be satisfied based on the trading volume, the Company’s shareholder composition and the anticipated widely‑held ownership of the Company’s shares, but no assurance can be given that this will be the case or remain so in the future, since continued compliance with this rule is subject to factors outside of the Company’s control. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments | |
Financial Instruments | 13. Financial Instruments The principal financial assets of the Company consist of cash and cash equivalents, trade receivables and other assets. The principal financial liabilities of the Company consist of long‑term bank loans. The following is a summary of the Company’s risk management strategies and the effect of these strategies on the Company’s consolidated financial statements. Interest Rate Risk: Interest rate risk arises on bank borrowings. The Company monitors the interest rate on borrowings closely to ensure that the borrowings are maintained at favorable rates. The interest rates relating to the long-term loans are disclosed in Note 10, “Long-term Debt, net”. Concentration of Credit Risk: Financial instruments that are potentially subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. The Company places its temporary cash investments, consisting mostly of deposits, with established financial institutions. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy. The Company depends upon a limited number of customers for a large part of its revenues. Refer to Note 14, “Operating Revenue”, for further details on revenue from significant clients. Credit risk with respect to trade accounts receivable is generally managed by the selection of customers among the major liner companies in the world and their dispersion across many geographic areas. Fair Value: The carrying amounts reflected in the accompanying consolidated balance sheets of financial assets and liabilities (excluding long-term bank loans and certain other non-current assets) approximate their respective fair values due to the short maturity of these instruments. The fair values of long-term floating rate bank loans approximate the recorded values, generally due to their variable interest rates. The fair value of available for sale securities is estimated based on weighted combination of (1) a yield-to-maturity analysis based on a quoted (non-binding) price from a third party broker, (2) a yield-to-maturity analysis of a similar bond(s) in an active market and (3) the available market data for yield-to-maturity for the corporate bonds, if available. The Company is exposed to changes in fair value of available for sale securities as there is no hedging strategy. Interest Rate Swaps: The Company currently has no outstanding interest rate swaps agreements. However, in the past years, the Company entered into interest rate swap agreements with its lenders in order to manage its floating rate exposure. Certain variable-rate interests on specific borrowings were associated with vessels under construction and were capitalized as a cost of the specific vessels. In accordance with the accounting guidance on derivatives and hedging, the amounts related to realized gains or losses on cash flow hedges that have been entered into and qualified for hedge accounting, in order to hedge the variability of that interest, were recognized in accumulated other comprehensive loss and are reclassified into earnings over the depreciable life of the constructed asset, since that depreciable life coincides with the amortization period for the capitalized interest cost on the debt. An amount of $3.6 million, $3.6 million and $3.7 million was reclassified into earnings for the years ended December 31, 2020, 2019 and 2018, respectively, representing amortization over the depreciable life of the vessels. Additionally, the Company recognized accelerated amortization of these deferred realized losses of nil, nil and $1.4 million in connection with the impairment losses recognized on the respective vessels for the years ended December 31, 2020, 2019 and 2018, respectively. An amount of $3.6 million is expected to be reclassified into earnings within the next 12 months. Fair Value of Financial Instruments The estimated fair values of the Company’s financial instruments are as follows: As of December 31, 2020 As of December 31, 2019 Book Value Fair Value Book Value Fair Value (in thousands of $) Cash and cash equivalents $ 65,663 $ 65,663 $ 139,170 $ 139,170 ZIM notes $ 43,559 $ 43,559 $ 20,078 $ 20,078 HMM notes $ 19,328 $ 19,328 $ 11,377 $ 11,377 Long-term debt, including current portion $ 1,368,100 $ 1,368,100 $ 1,423,812 $ 1,423,812 The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2020 (in thousands): Fair Value Measurements as of December 31, 2020 Total (Level I) (Level II) (Level III) (in thousands of $) ZIM notes(1) $ 43,559 $ — $ 43,559 $ — HMM notes(1) $ 19,328 $ — $ 19,328 $ — The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2020 (in thousands): Fair Value Measurements as of December 31, 2020 Total (Level I) (Level II) (Level III) (in thousands of $) Long-term debt, including current portion(2) $ 1,368,100 $ — $ 1,368,100 $ — The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2019: Fair Value Measurements as of December 31, 2019 Total (Level I) (Level II) (Level III) (in thousands of $) ZIM notes(1) $ 20,078 $ — $ 20,078 $ — HMM notes(1) $ 11,377 $ — $ 11,377 $ — The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2019: Fair Value Measurements as of December 31, 2019 Total (Level I) (Level II) (Level III) (in thousands of $) Long-term debt, including current portion(2) $ 1,423,812 $ — $ 1,423,812 $ — (1) The fair value is estimated based on a weighted combination of (1) a yield-to-maturity analysis based on a quoted (non-binding) price from a third party broker, (2) a yield-to-maturity analysis of a similar bond(s) in an active market and (3) the available market data for yield-to-maturity for the corporate bonds, if available. (2) Long-term debt, including current portion is presented gross of deferred finance costs of $25.1 million and $33.5 million as of December 31, 2020 and December 31, 2019, respectively. The fair value of the Company’s debt is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities, as well as taking into account its credit risk and does not include amounts related to the accumulated accrued interest. |
Operating Revenue
Operating Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Operating Revenue | |
Operating Revenue | 14. Operating Revenue Operating revenue from significant customers (constituting more than 10% of total revenue) for the years ended December 31, were as follows: Charterer 2020 2019 2018 CMA CGM 36 % 36 % 35 % HMM Korea 24 % 24 % 24 % YML 8 % 13 % 16 % |
Operating Revenue by Geographic
Operating Revenue by Geographic Location | 12 Months Ended |
Dec. 31, 2020 | |
Operating Revenue by Geographic Location | |
Operating Revenue by Geographic Location | 15. Operating Revenue by Geographic Location Operating revenue by geographic location of the customers for the years ended December 31, was as follows (in thousands): Continent 2020 2019 2018 Australia—Asia $ 203,991 $ 222,328 $ 255,476 Europe 242,704 211,312 196,880 America 14,899 13,604 6,376 Total Revenue $ 461,594 $ 447,244 $ 458,732 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 16. Commitments and Contingencies On September 1, 2016, Hanjin Shipping, a charterer of eight of the Company’s vessels, referred to the Seoul Central District Court, which issued an order to commence the rehabilitation proceedings of Hanjin Shipping. Hanjin Shipping has cancelled all eight charter party agreements with the Company. On February 17, 2017, the Seoul Central District Court (Bankruptcy Division), declared the bankruptcy of Hanjin Shipping, converting the rehabilitation proceeding to a bankruptcy proceeding. The Seoul Central District Court (Bankruptcy Division) appointed a bankruptcy trustee to dispose of Hanjin Shipping’s remaining assets and distribute the proceeds from the sale of such assets to Hanjin Shipping’s creditors according to their priorities. The Company ceased recognizing revenue from Hanjin Shipping effective from July 1, 2016 onwards. The Company has a total unsecured claim submitted to the Seoul Central District Court for unpaid charter hire, charges, expenses and loss of profit against Hanjin Shipping totaling $597.9 million, which is not recognized in the accompanying Consolidated Balance Sheet as of December 31, 2020 and 2019. There are no other material legal proceedings to which the Company is a party or to which any of its properties are the subject, or other contingencies that the Company is aware of, other than routine litigation incidental to the Company’s business. Furthermore, the Company does not have any commitments outstanding. See Note 4 "Fixed Assets, Net" for buyback obligation related to the sale and leaseback arrangement. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Stock Based Compensation | |
Stock Based Compensation | 17. Stock Based Compensation As of April 18, 2008, the Board of Directors and the Compensation Committee approved incentive compensation of the Manager’s employees with its shares from time to time, after specific for each such time, decision by the compensation committee and the Board of Directors in order to provide a means of compensation in the form of free shares to certain employees of the Manager of the Company’s common stock. The plan was effective as of December 31, 2008. Pursuant to the terms of the plan, employees of the Manager may receive (from time to time) shares of the Company’s common stock as additional compensation for their services offered during the preceding period. The total amount of stock to be granted to employees of the Manager will be at the Company’s Board of Directors’ discretion only and there will be no contractual obligation for any stock to be granted as part of the employees’ compensation package in future periods. On September 14, 2018, the Company granted 298,774 shares (4,182,832 shares before the 1-for-14 reverse stock split) of restricted stock to executive officers of the Company, out of which 149,386 restricted shares vested on December 31, 2019 and 149,388 restricted shares are scheduled to vest on December 31, 2021. Additionally, on May 10, 2019, the Company granted 137,944 shares of restricted stock to certain employees of the Manager (including 35,714 shares to executive officers), out of which 4,168 shares were forfeited in 2019 and 66,888 restricted shares vested on December 31, 2019. In 2020, 714 shares were forfeited and 66,174 restricted shares are scheduled to vest on December 31, 2021. These restricted shares are subject to satisfaction of the vesting terms, under the Company’s 2006 Equity Compensation Plan, as amended. 215,562 shares and 216,276 shares of restricted stock are issued and outstanding as of December 31, 2020 and December 31, 2019, respectively. The aggregate number of shares of common stock for which awards may be granted under the Plan shall not exceed 1,000,000 shares plus the number of unvested shares granted before August 2, 2019. The equity awards may be granted by the Company’s Compensation Committee or Board of Directors under its amended and restated 2006 equity compensation plan. Awards made under the Plan that have been forfeited, cancelled or have expired, will not be treated as having been granted for purposes of the preceding sentence. The Company has also established the Directors Share Payment Plan under its 2006 equity compensation plan. The purpose of the plan is to provide a means of payment of all or a portion of compensation payable to directors of the Company in the form of Company’s Common Stock. The plan was effective as of April 18, 2008. Each member of the Board of Directors of the Company may participate in the plan. Pursuant to the terms of the plan, Directors may elect to receive in common stock all or a portion of their compensation. Following December 31 of each year, the Company delivers to each Director the number of shares represented by the rights credited to their Share Payment Account during the preceding calendar year. During 2020, 2019 and 2018, none of the directors elected to receive shares as compensation. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | 18. Stockholders’ Equity In October 2020, the Company repurchased 4,339,271 shares of the Company’s common stock for an aggregate purchase price of $31.1 million in privately negotiated transactions, including 2,517,013 shares from the Royal Bank of Scotland and 1,822,258 shares from Sphinx Investment Corp. In December 2019, the Company completed the sale of 9,418,080 shares of common stock in the public offering raising aggregate proceeds net of underwriting discounts of $54.4 million, including an investment of approximately $17.3 million by DIL. Additionally the Company incurred approximately $0.9 million of related share issuance costs. On May 2, 2019, the Company effected a 1-for-14 reverse stock split of the issued and outstanding shares of common stock of the Company. All share and per share data disclosed in the accompanying consolidated financial statements give effect to this reverse stock split retroactively, for all periods presented. The reverse stock split reduced the number of the Company's outstanding shares of common stock from 213,324,455 to 15,237,456 on May 2, 2019 and affected all issued and outstanding shares of common stock. No fractional shares were issued in connection to the reverse stock split. Stockholders who would otherwise hold a fractional share of the Company's common stock received a cash payment in lieu of such fractional share. The par value and other terms of the Company's common stock were not affected by the reverse stock split. Our largest stockholder DIL contributed $10 million to the Company in connection with the consummation of the Refinancing on August 10, 2018. DIL did not receive any shares of common stock or other interests in the Company as a result of this contribution. Additionally, on August 10, 2018, in connection with this debt refinancing, the Company issued 7,095,877 shares new shares of common stock to certain of the Company’s lenders, which represented 47.5% of the outstanding common stock immediately after this issuance. On September 14, 2018, the Company granted 298,774 shares of restricted stock to executive officers of the Company, out of which 149,386 restricted shares vested on December 31, 2019 and 149,388 restricted shares are scheduled to vest on December 31, 2021. Additionally, on May 10, 2019, the Company granted 137,944 shares of restricted stock to certain employees of the Manager (including 35,714 shares to executive officers), out of which 4,168 shares were forfeited in 2019 and 66,888 restricted shares vested on December 31, 2019. In 2020, 714 shares were forfeited and 66,174 restricted shares are scheduled to vest on December 31, 2021. These restricted shares are subject to satisfaction of the vesting terms, under the Company's 2006 Equity Compensation Plan, as amended. 215,562 shares and 216,276 shares of restricted stock are issued and outstanding as of December 31, 2020 and December 31, 2019, respectively. As of December 31, 2020, 24,788,598 shares were issued and 20,449,327 shares were outstanding and as of December 31, 2019, the shares issued and outstanding were 24,789,312. As of December 31, 2020, 4,339,271 shares were held as Treasury shares. Under the Articles of Incorporation as amended on September 18, 2009, the Company’s authorized capital stock consists of 750,000,000 shares of common stock with a par value of $0.01 and 100,000,000 shares of preferred stock with a par value of $0.01. During 2020, 2019 and 2018, the Company did not declare any dividends. The Company was not permitted to pay cash dividends under the terms of the 2018 debt refinancing until (1) the Company receives in excess of $50 million in net cash proceeds from offerings of Common Stock and (2) the payment in full of the first installment of amortization payable following the consummation of the debt refinancing under each new credit facility and provided that an event of default has not occurred and the Company is not, and after giving effect to the payment of the dividend, in breach of any covenant. Following the sale of shares of common stock in the public offering completed in December 2019 described above, these conditions are fully satisfied. In 2011, the Company issued an aggregate of 15,000,000 warrants to its lenders under the 2011 bank agreement with its lenders and the January 2011 credit facilities to purchase, solely on a cashless exercise basis, an aggregate of 15,000,000 shares of its common stock, which warrants have an exercise price of $7.00 per share. All of these warrants expired on January 31, 2019. |
Earnings_(Loss) per Share
Earnings/(Loss) per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings/(Loss) per Share | |
Earnings/(Loss) per Share | 19. Earnings/(Loss) per Share The following table sets forth the computation of basic and diluted earnings/(loss) per share for the years ended December 31 (in thousands): 2020 2019 2018 Numerator: Net income/(loss) $ 153,550 $ 131,253 $ (32,936) Denominator (number of shares in thousands): Basic weighted average common shares outstanding 23,589 15,835 10,623 Effect of dilutive securities: Share based compensation 216 386 — Diluted weighted average common shares outstanding 23,805 16,221 10,623 The issued and outstanding 15,000,000 warrants to purchase shares of the Company's common stock (on a pre-split basis), which expired in January 2019, were excluded from the diluted earnings/(loss) per share for the years ended December 31, 2019 and 2018, because they were antidilutive. The unvested restricted shares were also excluded from the diluted earnings/(loss) per share for the year ended December 31, 2018, because they were antidilutive. Basic and diluted earnings per share amount related to the gain on debt extinguishment of $116.4 million recorded on the debt refinancing in the year ended December 31, 2018 (see Note 10) are $10.95 ($0.78 before the 1-for-14 reverse stock split). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Subsequent Events | 20. Subsequent Events On February 4, 2021, the Company announced the pricing of its offering of $300 million of 8.500% senior unsecured notes due in 2028. The Company intends to use the net proceeds from the offering, together with a new $815 million senior secured credit facility and a new $135 million sale leaseback arrangement, to implement a $1.25 billion refinancing of a substantial majority of its outstanding senior secured indebtedness. The notes offering closed on February 11, 2021 and the net proceeds of the notes offering were placed in an escrow account until the completion of the debt refinancing. The Company will be required to use the escrowed net proceeds, together with cash on hand, to redeem the notes at par, plus accrued and unpaid interest to but excluding the redemption date, if the refinancing is not completed by August 9, 2021. The $815 million senior secured credit facility remains subject to negotiation and entry into definitive documentation, and the transactions contemplated thereby, and by the $135 million sale leaseback arrangement, remain subject to customary closing conditions. On January 27, 2021, ZIM completed its initial public offering and listing on the New York Stock Exchange of its ordinary shares. The Company currently owns 10,186,950 ordinary shares of ZIM, which shareholding interest was valued at $203.1 million as of February 26, 2021, based on the closing price of ZIM ordinary shares on the NYSE on that date, and recorded at a book value of $75 thousands as of December 31, 2020. On January 20, 2021, the Company received $3.9 million from Hanjin Shipping as a partial payment of common benefit claim applied to the unpaid charter hires plus other outstandings and interest for the period from the date of Hanjin Shipping’s filing for bankruptcy until the termination notices for each respective charterparty. On February 12, 2021, the Board and the Compensation Committee granted an aggregate of 110,000 fully vested shares of common stock to our executive officers and independent directors and 40,000 shares, which may be subject to vesting of up to three years, were approved for future issuance to employees of our Manager under our Amended and Restated 2006 Equity Compensation Plan. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation: The accompanying consolidated financial statements represent the consolidation of the accounts of the Company and its wholly‑owned subsidiaries. The subsidiaries are fully consolidated from the date on which control is obtained by the Company. The Company also consolidates entities that are determined to be variable interest entities, of which the Company is the primary beneficiary, as defined in the accounting guidance, if it determines that it is the primary beneficiary. A variable interest entity is defined as a legal entity where either (a) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Inter‑company transaction balances and unrealized gains/(losses) on transactions between the companies are eliminated. |
Investments in affiliates | Investments in affiliates: The Company’s investments in affiliates are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company’s proportionate share of earnings or losses and distributions. The Company evaluates its investments in affiliates for impairment when events or circumstances indicate that the carrying value of such investments may have experienced other than temporary decline in value below their carrying value. If the estimated fair value is less than the carrying value and is considered an other than temporary decline, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Consolidated Statements of Operations. |
Use of Estimates | Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. On an on‑going basis, management evaluates the estimates and judgments, including those related to the selection of useful lives for tangible assets, expected future cash flows from long‑lived assets to support impairment tests, provisions necessary for accounts receivables, provisions for legal disputes, and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions and/or conditions. |
Reclassifications in Other Comprehensive Income/(Loss) | Reclassifications in Other Comprehensive Income/(Loss): The Company had the following reclassifications out of Accumulated Other Comprehensive Loss during the years ended December 31, 2020, 2019 and 2018, respectively (in thousands): Year ended December 31, Location of Reclassification into Income 2020 2019 2018 Amortization of deferred realized losses on cash flow hedges Net unrealized and realized losses on derivatives $ 3,632 $ 3,622 $ 3,694 Accelerated amortization of deferred realized losses on cash flow hedges Net unrealized and realized losses on derivatives — — 1,443 Total Reclassifications $ 3,632 $ 3,622 $ 5,137 |
Foreign Currency Translation | Foreign Currency Translation: The functional currency of the Company is the U.S. dollar. The Company engages in worldwide commerce with a variety of entities. Although its operations may expose it to certain levels of foreign currency risk, its transactions are predominantly U.S. dollar denominated. Additionally, the Company’s wholly‑owned vessel subsidiaries transacted a nominal amount of their operations in Euros; however, all of the subsidiaries’ primary cash flows are U.S. dollar denominated. Transactions in currencies other than the functional currency are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated, are recognized in the Consolidated Statements of Operations. The foreign currency exchange gains/(losses) recognized in the accompanying Consolidated Statements of Operations for each of the years ended December 31, 2020, 2019 and 2018 were $0.4 million loss, $0.2 million loss and $0.1 million loss, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents consist of interest bearing call deposits, where the Company has instant access to its funds and withdrawals and deposits can be made at any time, as well as time deposits with original maturities of three months or less which are not restricted for use or withdrawal. Cash and cash equivalents of $65.7 million as of December 31, 2020 (December 31, 2019: $139.2 million) comprised cash balances and short-term deposits. |
Restricted Cash | Restricted Cash: Cash restricted accounts include retention accounts and any cash that is legally restricted as to withdrawal or usage. Until the full repayment of the KEXIM ABN Amro loan facility in June 2018, the Company was required to deposit one-third of quarterly and one‑sixth of the semi‑annual principal installments and interest payments, respectively, due on the outstanding loan balance monthly in a retention account. On the rollover settlement date, both principal and interest were paid from the retention account. Refer to Note 3, "Cash, Cash Equivalents and Restricted Cash”. |
Accounts Receivable, Net | Accounts Receivable, Net: The amount shown as Accounts Receivable, net, at each balance sheet date includes estimated recoveries from charterers for hire from operating leases accounted for in accordance with Topic 842 and demurrage billings, net of a provision for doubtful accounts. Accounts receivable are short term in duration as payments are expected to be received within one year. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts based on the Company’s history of write‑offs, level of past due accounts based on the contractual term of the receivables and its relationships with and economic status of its customers. Bad debts are written off in the period in which they are identified. |
Insurance Claims | Insurance Claims: Insurance claims represent the claimable expenses, net of deductibles, which are expected to be recovered from insurance companies. Any costs to complete the claims are included in accrued liabilities. The Company accounts for the cost of possible additional call amounts under its insurance arrangements in accordance with the accounting guidance for contingencies based on the Company’s historical experience and the shipping industry practices. Insurance claims are included in the consolidated balance sheet line item “Other current assets”. |
Prepaid Expenses and Inventories | Prepaid Expenses and Inventories: Prepaid expenses consist mainly of insurance expenses, and inventories consist of bunkers, lubricants and provisions remaining on board the vessels at each period end, which are valued at cost as determined using the first‑in, first‑out method. Costs of spare parts are expensed as incurred. |
Deferred Financing Costs | Deferred Financing Costs: Loan arrangement fees incurred for obtaining new loans, for loans that have been accounted for as modified and the fees paid to third parties for loans that have been accounted for as extinguished, where there is a replacement debt and the lender remains the same, are deferred and amortized over the loans’ respective repayment periods using the effective interest rate method and are presented in the consolidated balance sheets as a direct deduction from the carrying amount of debt liability. Unamortized deferred financing costs for extinguished facilities are written-off. Loan arrangement fees related to the facilities accounted for under troubled debt restructuring with future undiscounted cash flows greater than the net carrying value of the original debt are capitalized and amortized over the loan respective repayment period using the effective interest rate method. Additionally, amortization of deferred finance costs amounting to $16.8 million, $16.9 million and $15.0 million is included in interest expenses in the Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018, respectively. |
Fixed Assets | Fixed Assets: Fixed assets consist of vessels. Vessels are stated at cost, less accumulated depreciation. The cost of vessels consists of the contract purchase price and any material expenses incurred upon acquisition (improvements and delivery expenses). Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels. Otherwise, these expenditures are charged to expense as incurred. Interest costs while under construction are included in vessels’ cost. The Company has acquired five vessels in the secondhand market in 2020, all of which were considered to be acquisitions of assets. Following adoption of ASU 2017-01 “Business Combinations (Topic 805)” on January 1, 2018, the Company evaluates if any vessel acquisition in secondhand market constitutes a business or not. When substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. The following assets are considered as a single asset for the purposes of the evaluation (i) a tangible asset that is attached to and cannot be physically removed and used separately from another tangible assets (or an intangible asset representing the right to use a tangible asset); (ii) in place lease intangibles, including favorable and unfavorable intangible assets or liabilities, and the related leased assets. The Company charters in two of its vessels Hyundai Honour and Hyundai Respect under a four years sale and leaseback arrangement. The proceeds received by the Company from the buyer-lessor were recognized as a financial leaseback obligation as this arrangement did not qualify for a sale of these vessels. The Company has substantive repurchase obligation of these vessels at the end of the leaseback period or earlier, at the Company's option, and retains the control over these vessels. Each leaseback payment is allocated between the liability and interest expense to achieve a constant interest rate on the leaseback obligation outstanding. The interest element of the leaseback payment is charged under "Interest expense" in the accompanying Consolidated Statements of Operations over the leaseback period. |
Depreciation | Depreciation: The cost of the Company’s vessels is depreciated on a straight-line basis over the vessels’ remaining economic useful lives after considering the estimated residual value (refer to Note 4, “Fixed Assets, net”). Management has estimated the useful life of the Company’s vessels to be 30 years from the year built. |
Vessels held for sale | Vessels held for sale: Vessels are classified as “Vessels held for sale” when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale. |
Accounting for Special Survey and Drydocking Costs | Accounting for Special Survey and Drydocking Costs: The Company follows the accounting guidance for planned major maintenance activities. Drydocking and special survey costs, which are reported in the balance sheet within “Deferred charges, net”, include planned major maintenance and overhaul activities for ongoing certification including the inspection, refurbishment and replacement of steel, engine components, electrical, pipes and valves, and other parts of the vessel. The Company follows the deferral method of accounting for special survey and drydocking costs, whereby actual costs incurred are deferred and amortized on a straight‑line basis over the period until the next scheduled survey and drydocking, which is two and a half years. If special survey or drydocking is performed prior to the scheduled date, the remaining unamortized balances are immediately written off. The amortization periods reflect the estimated useful economic life of the deferred charge, which is the period between each special survey and drydocking. Costs incurred during the drydocking period relating to routine repairs and maintenance are expensed. The unamortized portion of special survey and drydocking costs for vessels sold is included as part of the carrying amount of the vessel in determining the gain/(loss) on sale of the vessel. |
Pension and Retirement Benefit Obligations-Crew | Pension and Retirement Benefit Obligations‑Crew: The crew on board the companies’ vessels serve in such capacity under short‑term contracts (usually up to seven months) and accordingly, the vessel‑owning companies are not liable for any pension or post‑retirement benefits. |
Dividends | Dividends: Dividends, if any, are recorded in the Company’s financial statements in the period in which they are declared by the Company’s board of directors. |
Impairment of Long-lived Assets | Impairment of Long‑lived Assets: The accounting standard for impairment of long-lived assets requires that long-lived assets and certain identifiable intangibles held and used or disposed of by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If any such indication exists, the Company performs step one of the impairment test by comparing the undiscounted projected net operating cash flows for each vessel to its carrying value. In the case of a vessel held and used, if the future net undiscounted cash flows are less than the carrying value of the vessel, the Company performs step two of impairment assessment by comparing the vessel's fair value to its carrying value and an impairment loss is recorded equal to the difference between the vessel’s carrying value and fair value. As of December 31, 2020 and 2019, the Company concluded that events and circumstances triggered the existence of potential impairment of some of its vessels. These indicators included volatility in the charter market and the vessels’ market values, as well as the potential impact the current marketplace may have on its future operations. As a result, the Company performed step one of the impairment assessment for some of the Company’s vessels by comparing the undiscounted projected net operating cash flows for each vessel to its carrying value. The Company’s strategy is to charter its vessels under multi‑year, fixed rate period charters that have the initial terms ranging from less than 1 to 18 years for vessels in its fleet, providing the Company with contracted stable cash flows. The Company used number of factors and assumptions in its undiscounted projected net operating cash flow analysis included, among others, operating revenues, off‑hire revenues, drydocking costs, operating expenses and management fees estimates. Revenue assumptions were based on contracted time charter rates up to the end of life of the current contract of each vessel as well as the estimated time charter equivalent rates for the remaining life of the vessel after the completion of its current contract for non-contracted revenue days. The estimated daily time charter equivalent rate used for the non - contracted revenue days of each vessel is considered a significant assumption. Recognizing that the container transportation industry is cyclical and subject to significant volatility based on factors beyond the Company’s control, management believes that the most recent 5 to 15 years historical average time charter rates represent a reasonable benchmark for the estimated time charter equivalent rates for the non-contracted revenue days, as such averages take into account the volatility and cyclicality of the market. In addition, the Company used an annual operating expenses escalation factor and estimates of scheduled and unscheduled off-hire revenues based on historical experience. All estimates used and assumptions made were in accordance with the Company’s internal budgets and historical experience of the shipping industry. As at December 31, 2020 and 2019, the Company's assessment concluded that step two of the impairment analysis was not required for any vessel, as the undiscounted projected net operating cash flows of all vessels exceeded the carrying value of the respective vessels. As of December 31, 2020 and 2019, no impairment loss was identified. As at December 31, 2018, the Company’s assessment concluded that step two of the impairment analysis was required for certain of its vessels, as the undiscounted projected net operating cash flows of certain vessels did not exceed the carrying value of the respective vessels. Fair value of each vessel was determined by management with the assistance from valuations obtained by third party independent shipbrokers. As of December 31, 2018, the Company recorded an impairment loss of $210.7 million for ten of its vessels that are held and used, which is reflected under “Impairment loss” in the accompanying Consolidated Statements of Operations. |
Investments in Debt Securities | Investments in Debt Securities: Available for sale securities are carried at fair value with net unrealized gain/(loss) included in accumulated other comprehensive income/(loss), subject to impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Interest income, including amortization of premiums and accretion of discounts are recognized in the interest income in the consolidated statements of operations. Upon sale, realized gain/(loss) is recognized in the consolidated statement of operations based on specific identification method. The Company adopted ASU 2016-13 “Financial Instruments – Credit Losses (Topic 326)” on January 1, 2020. Management evaluates securities for impairment on a quarterly basis. An investment is considered impaired if the fair value of the investment is less than its amortized cost. Consideration is given to: i) if the Company intends to sell the security (that is, it has decided to sell the security); ii) it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis; or iii) a credit loss exists. If it is determined that the Company intends to sell the security or it is more likely than not that the Company will be required to sell the securities before the recovery of its entire amortized cost basis, the impairment loss, difference between the fair value and amortized cost basis of the securities, will be recorded in the accompanying Consolidated Statements of Operations. The fair value of debt securities is estimated based on a weighted combination of (1) a yield-to-maturity analysis based on a quoted (non-binding) price from a third party broker, (2) a yield-to-maturity analysis of a similar bond(s) in an active market and (3) the available market data for yield-to-maturity for the corporate bonds, if available. The weightings and the yield-to-maturities used in the calculation of fair value of the debt securities are assumptions that require significant management judgement. When the securities are impaired at the reporting date, and the Company does not meet the guidance for intending to sell or more likely than not being required to sell the securities before the amortized cost basis is recovered, the Company determines whether the impairment is related to credit or non-credit factors. To determine the amount of impairment related to credit, the Company compares the present value of the cash flows expected to be collected on the securities with the amortized cost basis of the securities. If the present value of cash flows expected to be collected is less than the securities’ amortized cost basis, the difference is recorded as an allowance for credit losses in the accompanying Consolidated Statements of Operations. Any remaining difference between the securities’ fair value and amortized cost basis is considered to be non-credit related impairment and is recorded in the accompanying Consolidated Statements of Other Comprehensive Income/(Loss). |
Investments in Equity Securities | Investments in Equity Securities: The Company classifies its equity securities of ZIM at cost as the Company does not have the ability to exercise significant influence. Following the adoption of ASU 2016-01 “Recognition and measurement of Financial Assets and Financial Liabilities” on January 1, 2018, the Company measures the investment in ZIM equity securities at cost, less impairment, adjusted for subsequent observable price changes. ZIM equity securities do not have readily determinable fair value in any of the periods presented. Management evaluates the equity security for other than temporary impairment on a quarterly basis. An investment is considered impaired if the fair value of the investment is less than its cost. Consideration is given to significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee, significant adverse change in the regulatory, economic, or technological environment of the investee, significant adverse change in the general market condition of either the geographic area or the industry in which the investee operates, as well as factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. |
Accounting for Revenue and Expenses | Accounting for Revenue and Expenses: The Company derives its revenue from time charters and bareboat charters of its vessels, each of which contains a lease. These charters involve placing the specified vessel at charterers’ use for a specified rental period of time in return for the payment of specified daily hire rates. Most of the charters include options for the charterers to extend their terms. Under a time charter, the daily hire rate includes lease component related to the right of use of the vessel and non-lease components primarily related to the operating expenses of the vessel incurred by the Company such as commissions, vessel operating expenses: crew expenses, lubricants, certain insurance expenses, repair and maintenance, spares, stores etc. and vessel management fees. Under a bareboat charter, the daily hire rate includes only lease component related to the right of use of the vessel. The revenue earned based on time charters is not negotiated in separate components. Revenue from the Company’s time charters and bareboat charters of vessels is accounted for as operating leases on a straight line basis based on the average fixed rentals over the minimum fixed rental period of the time charter and bareboat charter agreements, as service is performed. The Company elected the practical expedient which allows the Company to treat the lease and non-lease components as a single lease component for the leases where the timing and pattern of transfer for the nonlease component and the associated lease component to the lessees are the same and the lease component, if accounted for separately, would be classified as an operating lease. The combined component is therefore accounted for as an operating lease under ASC 842, as the lease components are the predominant characteristics, in 2020 and 2019. The Company adopted the new “Leases” standard (Topic 842) on January 1, 2019 using the modified retrospective method. The Company elected the practical expedient to use the effective date of adoption as the date of initial application. Furthermore the Company elected practical expedients, which allow entities (i) to not reassess whether any expired or existing contracts are considered or contain leases; (ii) to not reassess the lease classification for any expired or existing leases (iii) to not reassess initial direct costs for any existing leases and (iv) which allows to treat the lease and non-lease components as a single lease component due to its predominant characteristic. The adoption of this standard did not have a material effect on the consolidated financial statements since the Company is primarily a lessor and the accounting for lessors is largely unchanged under this standard. |
Voyage Expenses | Voyage Expenses: Voyage expenses include port and canal charges, bunker (fuel) expenses (bunker costs are normally covered by the Company’s charterers, except in certain cases such as vessel re‑positioning), address commissions and brokerage commissions. Under multi‑year time charters and bareboat charters, such as those on which the Company charters its containerships and under short‑term time charters, the charterers bear the voyage expenses other than brokerage and address commissions. As such, voyage expenses represent a relatively small portion of the vessels’ overall expenses. |
Vessel Operating Expenses | Vessel Operating Expenses: Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses for repairs and maintenance, the cost of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Aggregate expenses increase as the size of the Company’s fleet increases. Under multi‑year time charters, the Company pays for vessel operating expenses. Under bareboat charters, the Company’s charterers bear most vessel operating expenses, including the costs of crewing, insurance, surveys, drydockings, maintenance and repairs. |
General and administrative expenses | General and administrative expenses: General and administrative expenses include management fees paid to the vessels’ manager (refer to Note 11, “Related Party Transactions”), audit fees, legal fees, board remuneration, executive officers compensation, directors & officers insurance and stock exchange fees. |
Repairs and Maintenance | Repairs and Maintenance: All repair and maintenance expenses are charged against income when incurred and are included in vessel operating expenses in the accompanying Consolidated Statements of Operations. |
Troubled Debt Restructuring and Accumulated Accrued Interest | Troubled Debt Restructuring and Accumulated Accrued Interest: Prior to the finalization of the Refinancing (refer to Note 10, “Long-Term Debt, Net”), the Company concluded that it was experiencing financial difficulty and that certain of the lenders granted a concession (as part of the Refinancing). The Company was experiencing financial difficulty primarily as a result of the projected cash flows not being sufficient to service the balloon payment due as of December 31, 2018 without restructuring and the Company was not able to obtain funding from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt. As a result, the accounting guidance for troubled debt restructuring (“TDR”) was applied at the Closing Date. The TDR accounting guidance requires the Company to record the value of the new debt to its restructured undiscounted cash flows over the life of the loan, including cash flows associated with the remaining scheduled interest and principal payments not to exceed the carrying amount of the original debt. In cases in which the recorded value of the debt instrument exceeds the sum of undiscounted future cash flows to be received under the restructured debt instrument, the recorded value is reduced to the sum of undiscounted future cash flows, and a gain is recorded. As a result of the TDR accounting, the interest expense related to the future periods on certain facilities was recognized under the accumulated accrued interest line in the Balance Sheet. Interest payments relating to the future interest recognized in accumulated accrued interest, are recognized as a reduction to the accumulated accrued interest payable when these are paid. As a result, these interest payments are not recorded as interest expense. When interest rates change, actual cash flows will differ from the cash flows measured on the Refinancing closing date. The accounting treatment for changes in cash flows due to changes in interest rates depends on whether there is an increase or a decrease from the spot interest rate used in the initial TDR accounting (“threshold interest rate”). Fluctuations in the effective interest rate after the Refinancing from changes in the interest rate or other cause are accounted for as changes in estimates in the periods in which these changes occur. Upon an increase in the interest rates from the threshold interest rate used to calculate accumulated accrued interest payable, the Company recognizes additional interest expenses in the period the expense is incurred. The additional interest expense is calculated by multiplying the difference between the current interest rate and the threshold interest rate with the current carrying value of the debt. A gain due to decrease in interest rates (‘interest windfall’) will not be recognized until the debt facilities have been settled and there are no future interest payments. In case there are subsequent increases in interest rates above the threshold interest rate after a previous decrease in interest rates, the carrying amount of the accumulated accrued interest will be reduced by the interest payments in excess of the threshold interest rate until the prior interest windfall due to decrease in the interest rates is recaptured on a cumulative basis. The Paid-in-kind interest (“PIK interest”) related to each period will increase the carrying value of the loan facility and correspondingly decrease the carrying value of the accumulated accrued interest. PIK interest in excess of the amount recognized in the accumulated accrued interest is expensed in the period the expense is incurred. |
Going Concern | Going Concern: The management of the Company assesses the Company’s ability to continue as a going concern at each period end. The assessment evaluates whether there are conditions that give rise to substantial doubt to continue as a going concern within one year from the consolidated financial statements issuance date. If a substantial doubt to continue as a going concern is identified and after considering management’s plans this substantial doubt is alleviated the Company discloses the following: (i) principal conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern (before consideration of management’s plans), (ii) management’s evaluation of the significance of those conditions or events in relation to the Company’s ability to meet its obligations, (iii) management’s plans that alleviated substantial doubt about the Company’s ability to continue as a going concern. If a substantial doubt to continue as a going concern is identified and after considering management’s plans this substantial doubt is not alleviated the Company discloses the following: (i) a statement indicating that there is substantial doubt about the Company’s ability to continue as a going concern, (ii) principal conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern, (iii) management’s evaluation of the significance of those conditions or events in relation to the Company’s ability to meet its obligations, and (iv) management’s plans that are intended to mitigate the conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern. The Company updates the going concern disclosure in subsequent periods until the period in which substantial doubt no longer exists disclosing how the relevant conditions or events that raised substantial doubt were resolved. |
Segment Reporting | Segment Reporting: The Company reports financial information and evaluates its operations by total charter revenues. Although revenue can be identified for different types of charters, management does not identify expenses, profitability or other financial information for different charters. As a result, management, including the chief operating decision maker, reviews operating results solely by revenue per day and operating results of the fleet, and thus the Company has determined that it has only one operating and reportable segment. |
Derivative Instruments | Derivative Instruments: The Company entered into interest rate swap contracts to create economic hedges for its interest rate risks. The Company recorded these financial instruments at their fair value. When such derivatives do not qualify for hedge accounting, changes in their fair value are recorded in the Consolidated Statement of Operations. When the derivatives do qualify for hedge accounting, depending upon the nature of the hedge, changes in the fair value of derivatives are either offset against the fair value of assets, liabilities or firm commitments through income, or recognized in other comprehensive income (effective portion) and are reclassified to earnings when the hedged transaction is reflected in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in income. At the inception of the transaction, the Company documents the relationship between hedging instruments and hedged items, as well as its risk management objective and the strategy for undertaking various hedging transactions. The Company also documents its assessment, both at the hedge inception and on an ongoing basis, of whether the derivative financial instruments that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. On July 1, 2012, the Company elected to prospectively de‑designate fair value and cash flow interest rate swaps for which it was obtaining hedge accounting treatment due to the compliance burden associated with this accounting policy. As a result, all changes in the fair value of the Company’s cash flow interest rate swap agreements were recorded in earnings under “Loss on derivatives” from the de‑designation date forward. The Company evaluated whether it is probable that the previously hedged forecasted interest payments are probable to not occur in the originally specified time period. The Company has concluded that the previously hedged forecasted interest payments are probable of occurring. Therefore, unrealized gains or losses in accumulated other comprehensive loss associated with the previously designated cash flow interest rate swaps will remain frozen in accumulated other comprehensive loss and recognized in earnings when the interest payments will be recognized. If such interest payments were to be identified as being probable of not occurring, the accumulated other comprehensive loss balance pertaining to these amounts would be reversed through earnings immediately. The Company does not use financial instruments for trading or other speculative purposes. |
Earnings/(Loss) Per Share | Earnings/(Loss) Per Share: The Company has presented net earnings/(loss) per share for all years presented based on the weighted average number of outstanding shares of common stock of Danaos Corporation at the reported periods. Diluted earnings per share reflect the potential dilution that would occur if securities or other contracts to issue common stock were exercised. The warrants issued in 2011 and which expired in January 2019 were excluded from the diluted earnings/(loss) per share for the year ended December 31, 2019 and 2018, because they were antidilutive. Unvested shares of restricted stock are included in the calculation of the diluted earnings per share, unless considered antidilutive, based on the weighted average number of shares of restricted stock outstanding during the period. |
Treasury Stock | Treasury Stock: The Company recognizes treasury stock based on the price paid to repurchase its shares, including direct costs to acquire treasury stock. Treasury stock is recorded as a reduction from common stock at its par value and the price paid in excess of par value and direct cots, if any, as a reduction from additional paid-in capital. Treasury stock is excluded from average common shares outstanding for basic and diluted earnings per share. |
Equity Compensation Plan | Equity Compensation Plan: The Company has adopted an equity compensation plan (the “Plan”) in 2006 (as amended on August 2, 2019), which is generally administered by the compensation committee of the Board of Directors. The Plan allows the plan administrator to grant awards of shares of common stock or the right to receive or purchase shares of common stock to employees, directors or other persons or entities providing significant services to the Company or its subsidiaries. The actual terms of an award will be determined by the plan administrator and set forth in written award agreement with the participant. Any options granted under the Plan will be accounted for in accordance with the accounting guidance for share‑based compensation arrangements. The aggregate number of shares of common stock for which awards may be granted under the Plan shall not exceed 1,000,000 shares plus the number of unvested shares granted before August 2, 2019. Awards made under the Plan that have been forfeited, cancelled or have expired, will not be treated as having been granted for purposes of the preceding sentence. Unless otherwise set forth in an award agreement, any awards outstanding under the Plan will vest immediately upon a “change of control”, as defined in the Plan. Refer to Note 17, “Stock Based Compensation”. As of April 18, 2008, the Company established the Directors Share Payment Plan (“Directors Plan”). The purpose of the Directors Plan is to provide a means of payment of all or a portion of compensation payable to directors of the Company in the form of Company’s Common Stock. Each member of the Board of Directors of the Company may participate in the Directors Plan. Pursuant to the terms of the Directors Plan, Directors may elect to receive in Common Stock all or a portion of their compensation. On the last business day of each quarter, the rights of common stock are credited to each Director’s Share Payment Account. Following December 31st of each year, the Company will deliver to each Director the number of shares represented by the rights credited to their Share Payment Account during the preceding calendar year. Refer to Note 17, “Stock Based Compensation”. As of April 18, 2008, the Board of Directors and the Compensation Committee approved the Company’s ability to provide, from time to time, incentive compensation to the employees of Danaos Shipping Company Limited (the “Manager”), in the form of free shares of the Company’s common stock under the Plan. Prior approval is required by the Compensation Committee and the Board of Directors. The plan was effective since December 31, 2008. Pursuant to the terms of the plan, employees of the Manager may receive (from time to time) shares of the Company’s common stock as additional compensation for their services offered during the preceding period. The total amount of stock to be granted to employees of the Manager will be at the Company’s Board of Directors’ discretion only and there will be no contractual obligation for any stock to be granted as part of the employees’ compensation package in future periods. Refer to Note 17, “Stock Based Compensation”. |
Newly Implemented Accounting Policies | Newly Implemented Accounting Principles: The Company adopted Topic 326 “Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments” on January 1, 2020. This standard provides new guidance for measuring and recognizing credit losses on financial instruments using the modified retrospective approach with a cumulative effect adjustment to opening retained earnings recorded at the beginning of the period of adoption. The standard applies to the allowance for uncollectible debt securities in the Company’s books, but did not result in any significant changes to the allowance methodology and did not have a material impact on the Company’s consolidated financial statements for the year ended December 31, 2020. In March 2020, the FASB issued ASU 2020-4, “Reference Rate Reform (Topic 848)” (“ASU 2020-4”), which provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of LIBOR as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848)–Scope” which clarifies the scope of Topic 848. The ASU 2020-4 was effective for the Company beginning on March 12, 2020 and the Company will apply the amendments prospectively through December 31, 2022. There was no impact to the Company’s consolidated financial statements for the year ended December 31, 2020 as a result of adopting this standard update. Currently, the Company has various contracts that reference LIBOR and is assessing how this standard may be applied to possible future specific contract modifications. |
Basis of Presentation and Gen_2
Basis of Presentation and General Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Basis of Presentation and General Information | |
Schedule of the vessel owning companies (the "Danaos Subsidiaries") | As of December 31, 2020, Danaos consolidated the vessel owning companies (the “Danaos Subsidiaries”) listed below. All vessels are container vessels: Year Company Date of Incorporation Vessel Name Built TEU(1) Megacarrier (No. 1) Corp. September 10, 2007 Hyundai Honour 13,100 Megacarrier (No. 2) Corp. September 10, 2007 Hyundai Respect 13,100 Megacarrier (No. 3) Corp. September 10, 2007 Hyundai Smart (ex Maersk Enping) 13,100 Megacarrier (No. 4) Corp. September 10, 2007 Hyundai Speed (ex Maersk Exeter) 13,100 Megacarrier (No. 5) Corp. September 10, 2007 Hyundai Ambition (ex MSC Ambition) 13,100 CellContainer (No. 6) Corp. October 31, 2007 Express Berlin 10,100 CellContainer (No. 7) Corp. October 31, 2007 Express Rome 10,100 CellContainer (No. 8) Corp. October 31, 2007 Express Athens 10,100 Karlita Shipping Co. Ltd. February 27, 2003 Pusan C 9,580 Ramona Marine Co. Ltd. February 27, 2003 Le Havre 9,580 Oceancarrier (No. 2) Corp. October 15, 2020 Bremen (ex CPO Bremen) 9,012 Oceancarrier (No. 3) Corp. October 15, 2020 C Hamburg (ex CPO Hamburg) 9,012 Blackwell Seaways Inc. January 9, 2020 Niledutch Lion 8,626 Oceancarrier (No. 1) Corp. February 19, 2020 Charleston (ex SM Charleston) 8,533 Teucarrier (No. 5) Corp. September 17, 2007 CMA CGM Melisande 8,530 Teucarrier (No. 1) Corp. January 31, 2007 CMA CGM Attila 8,530 Teucarrier (No. 2) Corp. January 31, 2007 CMA CGM Tancredi 8,530 Teucarrier (No. 3) Corp. January 31, 2007 CMA CGM Bianca 8,530 Teucarrier (No. 4) Corp. January 31, 2007 CMA CGM Samson 8,530 Oceanew Shipping Ltd. January 14, 2002 Europe 8,468 Oceanprize Navigation Ltd. January 21, 2003 America 8,468 Rewarding International Shipping Inc. October 1, 2019 Phoebe 8,463 Boxcarrier (No. 2) Corp. June 27, 2006 CMA CGM Musset 6,500 Boxcarrier (No. 3) Corp. June 27, 2006 CMA CGM Nerval 6,500 Boxcarrier (No. 4) Corp. June 27, 2006 CMA CGM Rabelais 6,500 Boxcarrier (No. 5) Corp. June 27, 2006 CMA CGM Racine 6,500 Boxcarrier (No. 1) Corp. June 27, 2006 CMA CGM Moliere 6,500 Expresscarrier (No. 1) Corp. March 5, 2007 YM Mandate 6,500 Expresscarrier (No. 2) Corp. March 5, 2007 YM Maturity 6,500 Actaea Company Limited October 14, 2014 Performance 6,402 Asteria Shipping Company Limited October 14, 2014 Dimitra C 6,402 Continent Marine Inc. March 22, 2006 Zim Monaco 4,253 Medsea Marine Inc. May 8, 2006 Zim Dalian 4,253 Blacksea Marine Inc. May 8, 2006 Zim Luanda 4,253 Bayview Shipping Inc. March 22, 2006 Rio Grande (ex Zim Rio Grande) 4,253 Channelview Marine Inc. March 22, 2006 Zim Sao Paolo 4,253 Balticsea Marine Inc. March 22, 2006 Zim Kingston 4,253 Seacarriers Services Inc. June 28, 2005 Seattle C 4,253 Seacarriers Lines Inc. June 28, 2005 Vancouver (ex YM Vancouver) 4,253 Containers Services Inc. May 30, 2002 ANL Tongala 4,253 Containers Lines Inc. May 30, 2002 Derby D 4,253 Boulevard Shiptrade S.A September 12, 2013 Dimitris C 3,430 CellContainer (No. 4) Corp. March 23, 2007 Express Spain 3,400 CellContainer (No. 5) Corp. March 23, 2007 Express Black Sea 3,400 CellContainer (No. 1) Corp. March 23, 2007 Express Argentina 3,400 CellContainer (No. 2) Corp. March 23, 2007 Express Brazil 3,400 CellContainer (No. 3) Corp. March 23, 2007 Express France 3,400 Wellington Marine Inc. January 27, 2005 Singapore 3,314 Auckland Marine Inc. January 27, 2005 Colombo 3,314 Vilos Navigation Company Ltd. May 30, 2013 Zebra (ex MSC Zebra) 2,602 Trindade Maritime Company April 10, 2013 Amalia C 2,452 Sarond Shipping Inc. January 18, 2013 Danae C 2,524 Speedcarrier (No. 7) Corp. December 6, 2007 Highway 2,200 Speedcarrier (No. 6) Corp. December 6, 2007 Progress C 2,200 Speedcarrier (No. 8) Corp. December 6, 2007 Bridge 2,200 Speedcarrier (No. 1) Corp. June 28, 2007 Vladivostok 2,200 Speedcarrier (No. 2) Corp. June 28, 2007 Advance 2,200 Speedcarrier (No. 3) Corp. June 28, 2007 Stride 2,200 Speedcarrier (No. 5) Corp. June 28, 2007 Future 2,200 Speedcarrier (No. 4) Corp. June 28, 2007 Sprinter 2,200 (1) Twenty-foot equivalent unit, the international standard measure for containers and containership capacity. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Schedule of reclassifications out of accumulated other comprehensive loss | The Company had the following reclassifications out of Accumulated Other Comprehensive Loss during the years ended December 31, 2020, 2019 and 2018, respectively (in thousands): Year ended December 31, Location of Reclassification into Income 2020 2019 2018 Amortization of deferred realized losses on cash flow hedges Net unrealized and realized losses on derivatives $ 3,632 $ 3,622 $ 3,694 Accelerated amortization of deferred realized losses on cash flow hedges Net unrealized and realized losses on derivatives — — 1,443 Total Reclassifications $ 3,632 $ 3,622 $ 5,137 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash, Cash Equivalents and Restricted Cash | |
Schedule of cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash consisted of the following (in thousands): As of As of As of As of December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 Cash and cash equivalents $ 65,663 $ 139,170 $ 77,275 $ 66,895 Restricted cash — — — 2,812 Total $ 65,663 $ 139,170 $ 77,275 $ 69,707 |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fixed Assets, Net | |
Schedule of fixed assets, net | Fixed assets, net consisted of the following (in thousands): Vessel Accumulated Net Book Costs Depreciation Value As of January 1, 2018 $ 3,559,161 $ (763,190) $ 2,795,971 Additions 2,830 — 2,830 Impairment Loss (337,738) 127,023 (210,715) Depreciation — (107,757) (107,757) As of December 31, 2018 $ 3,224,253 $ (743,924) $ 2,480,329 Additions 6,050 — 6,050 Depreciation — (96,505) (96,505) As of December 31, 2019 $ 3,230,303 $ (840,429) $ 2,389,874 Additions 191,594 — 191,594 Depreciation — (101,531) (101,531) As of December 31, 2020 $ 3,421,897 $ (941,960) $ 2,479,937 |
Schedule of vessels acquired | Company Vessel Name Year Built TEU Date of vessel delivery Blackwell Seaways Inc. Niledutch Lion 2008 8,626 January 23, 2020 Rewarding International Shipping Inc. Phoebe 2005 8,463 April 14, 2020 Oceancarrier (No.1) Corp. Charleston 2005 8,533 June 10, 2020 Oceancarrier (No. 2) Corp. Bremen (ex CPO Bremen) 2009 9,012 December 3, 2020 Oceancarrier (No. 3) Corp. C Hamburg (ex CPO Hamburg) 2009 9,012 December 15, 2020 |
Schedule of leaseback instalments | The scheduled leaseback instalments subsequent to December 31, 2020 are as follows (in thousands): Instalments due by period ended: December 31, 2021 $ 30,916 December 31, 2022 30,915 December 31, 2023 30,915 Until May 2024 46,249 Total leaseback instalments 138,995 Less: Imputed interest (15,605) Total leaseback obligation 123,390 Less: Deferred finance costs, net (3,290) Less: Current leaseback obligation (24,515) Leaseback obligation, net of current portion $ 95,585 |
Deferred Charges, Net (Tables)
Deferred Charges, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Charges, Net | |
Schedule of deferred charges, net | Deferred charges, net consisted of the following (in thousands): Drydocking and Special Survey Costs As of January 1, 2018 $ 8,962 Additions 13,306 Amortization (9,237) As of December 31, 2018 $ 13,031 Additions 7,157 Amortization (8,733) As of December 31, 2019 $ 11,455 Additions 16,916 Amortization (11,032) As of December 31, 2020 $ 17,339 |
Investments in affiliates (Tabl
Investments in affiliates (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments in affiliates | |
Consolidated wholly owned subsidiaries | As of December 31, 2020, Gemini consolidated its wholly owned subsidiaries listed below: Company Vessel Name Year Built TEU Date of vessel delivery Averto Shipping S.A. Suez Canal 5,610 July 20, 2015 Sinoi Marine Ltd. Genoa 5,544 August 2, 2015 Kingsland International Shipping Limited Catherine C 6,422 September 21, 2015 Leo Shipping and Trading S.A. Leo C 6,422 February 4, 2016 Springer Shipping Co Belita 8,533 August 26, 2019 |
Summary of the financial information for equity accounted investments | A condensed summary of the financial information for equity accounted investments 49% owned by the Company shown on a 100% basis are as follows (in thousands): 2020 2019 2018 Current assets $ 11,524 $ 6,242 Non-current assets $ 69,149 $ 69,740 Current liabilities $ 7,585 $ 9,892 Long-term liabilities $ 41,920 $ 47,795 Net operating revenues $ 31,844 $ 20,264 $ 18,885 Net income $ 12,873 $ 3,268 $ 2,787 |
Other Non-current Assets (Table
Other Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Non-current Assets | |
Schedule of other non-current assets | Other non‑current assets consisted of the following (in thousands): 2020 2019 Available for sale securities: ZIM notes, net $ 43,559 $ 20,078 HMM notes, net 19,328 11,377 Equity participation ZIM 75 — Advances for vessels additions — 18,800 Advances for vessels acquisition — 2,507 Other assets 20,421 29,577 Total $ 83,383 $ 82,339 |
Schedule of available for sale securities at fair value and unrealized losses | The following tables summarizes the unrealized positions for available-for-sale debt securities as of December 31, 2020 and December 31, 2019 (in thousands): Amortized cost Description of securities basis Fair value Unrealized loss December 31, 2020 ZIM notes $ 49,871 $ 43,559 $ (6,312) HMM notes 24,607 19,328 (5,279) Total $ 74,478 $ 62,887 $ (11,591) December 31, 2019 ZIM notes $ 47,171 $ 20,078 $ (27,093) HMM notes 22,508 11,377 (11,131) Total $ 69,679 $ 31,455 $ (38,224) |
Schedule of unrealized loss on available for sale securities | Unrealized loss on available for sale securities Balance as of January 1, 2018 $ (26,607) Unrealized loss on available for sale securities (9,771) Balance as of December 31, 2018 (36,378) Unrealized loss on available for sale securities (1,846) Balance as of December 31, 2019 $ (38,224) Unrealized gain on available for sale securities 26,633 Balance as of December 31, 2020 $ (11,591) |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following (in thousands): 2020 2019 Accrued payroll $ 1,008 $ 809 Accrued interest 2,137 3,910 Accrued dry-docking expenses 2,177 — Accrued expenses 5,638 3,808 Total $ 10,960 $ 8,527 |
Lease Arrangements (Tables)
Lease Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lease Arrangements | |
Schedule of future minimum rentals, expected to be earned on non cancellable time charters | The future minimum rentals, expected to be earned on non-cancellable time charters consisted of the following as of December 31, 2020 (in thousands): 2021 $ 478,692 2022 310,499 2023 190,308 2024 57,070 2025 19,571 2026 and thereafter 42,642 Total future rentals $ 1,098,782 |
Long-Term Debt, net (Tables)
Long-Term Debt, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Debt, net. | |
Schedule of long-term debt, net | Long‑term debt consisted of the following (in thousands): Balance as of Balance as of December 31, December 31, Credit Facility 2020 2019 The Royal Bank of Scotland $475.5 mil. Facility $ 433,412 $ 458,604 HSH Nordbank AG—Aegean Baltic Bank—Piraeus Bank $382.5 mil. Facility 351,759 372,340 Citibank $114 mil. Facility 63,061 74,402 Credit Suisse $171.8 mil. Facility 101,254 115,759 Citibank—Eurobank $37.6 mil. Facility 17,669 27,455 Club Facility $206.2 mil. 124,427 143,389 Sinosure Cexim—Citibank—ABN Amro $203.4 mil. Facility 20,340 40,680 Citibank $123.9 mil. Facility 85,280 88,793 Citibank $120 mil. Facility 93,742 100,245 Macquarie Bank $58 mil. Facility 56,000 — SinoPac $13.3 mil. Facility 12,800 — Fair value of debt (14,304) (19,994) Comprehensive Financing Plan exit fees accrued 22,660 22,139 Total long-term debt $ 1,368,100 $ 1,423,812 Less: Deferred finance costs, net (25,093) (33,476) Less: Current portion, net (155,662) (119,673) Total long-term debt net of current portion and deferred finance cost $ 1,187,345 $ 1,270,663 |
Schedule of debt maturities of long-term debt | The scheduled debt maturities of total long-term debt subsequent to December 31, 2020 are as follows (in thousands): Fixed principal Variable principal Final Total Payments due by period ended repayments repayments payments * principal payments December 31, 2021 $ 132,003 $ 23,943 — $ 155,946 December 31, 2022 100,823 — 100,823 December 31, 2023 83,594 $ 693,336 776,930 December 31, 2024 6,400 287,095 293,495 December 31, 2025 3,200 29,350 32,550 Total long-term debt $ 326,020 $ 23,943 $ 1,009,781 $ 1,359,744 * The final payments include the unamortized remaining principal debt balances under the 2018 Credit Facilities, as such amount will be determinable following the fixed amortization. As mentioned above, the Company is also subject to quarterly variable principal amortization based on actual free cash flows, which are included under “Final payments” in this table. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments | |
Schedule of estimated fair values of the financial instruments | As of December 31, 2020 As of December 31, 2019 Book Value Fair Value Book Value Fair Value (in thousands of $) Cash and cash equivalents $ 65,663 $ 65,663 $ 139,170 $ 139,170 ZIM notes $ 43,559 $ 43,559 $ 20,078 $ 20,078 HMM notes $ 19,328 $ 19,328 $ 11,377 $ 11,377 Long-term debt, including current portion $ 1,368,100 $ 1,368,100 $ 1,423,812 $ 1,423,812 |
Schedule of estimated fair value of the financial instruments, categorized based upon the fair value hierarchy | The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2020 (in thousands): Fair Value Measurements as of December 31, 2020 Total (Level I) (Level II) (Level III) (in thousands of $) ZIM notes(1) $ 43,559 $ — $ 43,559 $ — HMM notes(1) $ 19,328 $ — $ 19,328 $ — The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2020 (in thousands): Fair Value Measurements as of December 31, 2020 Total (Level I) (Level II) (Level III) (in thousands of $) Long-term debt, including current portion(2) $ 1,368,100 $ — $ 1,368,100 $ — The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2019: Fair Value Measurements as of December 31, 2019 Total (Level I) (Level II) (Level III) (in thousands of $) ZIM notes(1) $ 20,078 $ — $ 20,078 $ — HMM notes(1) $ 11,377 $ — $ 11,377 $ — The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2019: Fair Value Measurements as of December 31, 2019 Total (Level I) (Level II) (Level III) (in thousands of $) Long-term debt, including current portion(2) $ 1,423,812 $ — $ 1,423,812 $ — (1) The fair value is estimated based on a weighted combination of (1) a yield-to-maturity analysis based on a quoted (non-binding) price from a third party broker, (2) a yield-to-maturity analysis of a similar bond(s) in an active market and (3) the available market data for yield-to-maturity for the corporate bonds, if available. (2) Long-term debt, including current portion is presented gross of deferred finance costs of $25.1 million and $33.5 million as of December 31, 2020 and December 31, 2019, respectively. The fair value of the Company’s debt is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities, as well as taking into account its credit risk and does not include amounts related to the accumulated accrued interest. |
Operating Revenue (Tables)
Operating Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Revenue | |
Schedule of operating revenue from significant customers (constituting more than 10% of total revenue) | Charterer 2020 2019 2018 CMA CGM 36 % 36 % 35 % HMM Korea 24 % 24 % 24 % YML 8 % 13 % 16 % |
Operating Revenue by Geograph_2
Operating Revenue by Geographic Location (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Revenue by Geographic Location | |
Schedule of operating revenue by geographic location | Operating revenue by geographic location of the customers for the years ended December 31, was as follows (in thousands): Continent 2020 2019 2018 Australia—Asia $ 203,991 $ 222,328 $ 255,476 Europe 242,704 211,312 196,880 America 14,899 13,604 6,376 Total Revenue $ 461,594 $ 447,244 $ 458,732 |
Earnings_(Loss) per Share (Tabl
Earnings/(Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings/(Loss) per Share | |
Schedule of computation of basic and diluted earnings/(loss) per share | The following table sets forth the computation of basic and diluted earnings/(loss) per share for the years ended December 31 (in thousands): 2020 2019 2018 Numerator: Net income/(loss) $ 153,550 $ 131,253 $ (32,936) Denominator (number of shares in thousands): Basic weighted average common shares outstanding 23,589 15,835 10,623 Effect of dilutive securities: Share based compensation 216 386 — Diluted weighted average common shares outstanding 23,805 16,221 10,623 |
Basis of Presentation and Gen_3
Basis of Presentation and General Information (Details) $ / shares in Units, $ in Thousands | May 02, 2019shares | Dec. 31, 2018USD ($) | Dec. 31, 2020item$ / sharesshares | Dec. 31, 2019$ / sharesshares | Sep. 18, 2009$ / sharesshares |
Property, Plant and Equipment | |||||
Common stock, authorized capital stock (in shares) | shares | 750,000,000 | 750,000,000 | 750,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred stock, authorized capital stock (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Number of shares issued for one share under reverse stock split | 0.0714 | ||||
Common stock, shares outstanding before reverse stock split| shares | shares | 213,324,455 | ||||
Common Stock, Shares, Outstanding | shares | 15,237,456 | 20,449,327 | 24,789,312 | ||
Impairment loss | $ | $ 210,715 | ||||
Hyundai Honour | |||||
Property, Plant and Equipment | |||||
TEU | 13,100 | ||||
Hyundai Respect | |||||
Property, Plant and Equipment | |||||
TEU | 13,100 | ||||
Maersk Enping | |||||
Property, Plant and Equipment | |||||
TEU | 13,100 | ||||
Maersk Exeter | |||||
Property, Plant and Equipment | |||||
TEU | 13,100 | ||||
MSC Ambition | |||||
Property, Plant and Equipment | |||||
TEU | 13,100 | ||||
Express Berlin | |||||
Property, Plant and Equipment | |||||
TEU | 10,100 | ||||
Express Rome | |||||
Property, Plant and Equipment | |||||
TEU | 10,100 | ||||
Express Athens | |||||
Property, Plant and Equipment | |||||
TEU | 10,100 | ||||
Pusan C | |||||
Property, Plant and Equipment | |||||
TEU | 9,580 | ||||
Le Havre | |||||
Property, Plant and Equipment | |||||
TEU | 9,580 | ||||
CPO Bremen | |||||
Property, Plant and Equipment | |||||
TEU | 9,012 | ||||
CPO Hamburg | |||||
Property, Plant and Equipment | |||||
TEU | 9,012 | ||||
Niledutch Lion | |||||
Property, Plant and Equipment | |||||
TEU | 8,626 | ||||
Charleston (ex SM Charleston) | |||||
Property, Plant and Equipment | |||||
TEU | 8,533 | ||||
CMA CGM Melisande | |||||
Property, Plant and Equipment | |||||
TEU | 8,530 | ||||
CMA CGM Attila | |||||
Property, Plant and Equipment | |||||
TEU | 8,530 | ||||
CMA CGM Tancredi | |||||
Property, Plant and Equipment | |||||
TEU | 8,530 | ||||
CMA CGM Bianca | |||||
Property, Plant and Equipment | |||||
TEU | 8,530 | ||||
CMA CGM Samson | |||||
Property, Plant and Equipment | |||||
TEU | 8,530 | ||||
Europe | |||||
Property, Plant and Equipment | |||||
TEU | 8,468 | ||||
America | |||||
Property, Plant and Equipment | |||||
TEU | 8,468 | ||||
Phoebe | |||||
Property, Plant and Equipment | |||||
TEU | 8,463 | ||||
CMA CGM Musset | |||||
Property, Plant and Equipment | |||||
TEU | 6,500 | ||||
CMA CGM Nerval | |||||
Property, Plant and Equipment | |||||
TEU | 6,500 | ||||
CMA CGM Rabelais | |||||
Property, Plant and Equipment | |||||
TEU | 6,500 | ||||
CMA CGM Racine | |||||
Property, Plant and Equipment | |||||
TEU | 6,500 | ||||
CMA CGM Moliere | |||||
Property, Plant and Equipment | |||||
TEU | 6,500 | ||||
YM Mandate | |||||
Property, Plant and Equipment | |||||
TEU | 6,500 | ||||
YM Maturity | |||||
Property, Plant and Equipment | |||||
TEU | 6,500 | ||||
Performance | |||||
Property, Plant and Equipment | |||||
TEU | 6,402 | ||||
Dimitra C | |||||
Property, Plant and Equipment | |||||
TEU | 6,402 | ||||
Zim Monaco | |||||
Property, Plant and Equipment | |||||
TEU | 4,253 | ||||
Zim Dalian | |||||
Property, Plant and Equipment | |||||
TEU | 4,253 | ||||
Zim Luanda | |||||
Property, Plant and Equipment | |||||
TEU | 4,253 | ||||
Zim Rio Grande | |||||
Property, Plant and Equipment | |||||
TEU | 4,253 | ||||
Zim Sao Paolo | |||||
Property, Plant and Equipment | |||||
TEU | 4,253 | ||||
Zim Kingston | |||||
Property, Plant and Equipment | |||||
TEU | 4,253 | ||||
Seattle C (ex YM Seattle) | |||||
Property, Plant and Equipment | |||||
TEU | 4,253 | ||||
YM Vancouver | |||||
Property, Plant and Equipment | |||||
TEU | 4,253 | ||||
ANL Tongala | |||||
Property, Plant and Equipment | |||||
TEU | 4,253 | ||||
Derby D | |||||
Property, Plant and Equipment | |||||
TEU | 4,253 | ||||
Dimitris C | |||||
Property, Plant and Equipment | |||||
TEU | 3,430 | ||||
Express Spain | |||||
Property, Plant and Equipment | |||||
TEU | 3,400 | ||||
Express Black Sea | |||||
Property, Plant and Equipment | |||||
TEU | 3,400 | ||||
Express Argentina | |||||
Property, Plant and Equipment | |||||
TEU | 3,400 | ||||
Express Brazil | |||||
Property, Plant and Equipment | |||||
TEU | 3,400 | ||||
Express France | |||||
Property, Plant and Equipment | |||||
TEU | 3,400 | ||||
Singapore | |||||
Property, Plant and Equipment | |||||
TEU | 3,314 | ||||
Colombo | |||||
Property, Plant and Equipment | |||||
TEU | 3,314 | ||||
Zebra (ex MSC Zebra) | |||||
Property, Plant and Equipment | |||||
TEU | 2,602 | ||||
Amalia C | |||||
Property, Plant and Equipment | |||||
TEU | 2,452 | ||||
Danae C | |||||
Property, Plant and Equipment | |||||
TEU | 2,524 | ||||
Highway | |||||
Property, Plant and Equipment | |||||
TEU | 2,200 | ||||
Progress C | |||||
Property, Plant and Equipment | |||||
TEU | 2,200 | ||||
Bridge | |||||
Property, Plant and Equipment | |||||
TEU | 2,200 | ||||
Vladivostok | |||||
Property, Plant and Equipment | |||||
TEU | 2,200 | ||||
Advance | |||||
Property, Plant and Equipment | |||||
TEU | 2,200 | ||||
Stride | |||||
Property, Plant and Equipment | |||||
TEU | 2,200 | ||||
Future | |||||
Property, Plant and Equipment | |||||
TEU | 2,200 | ||||
Sprinter | |||||
Property, Plant and Equipment | |||||
TEU | 2,200 |
Significant Accounting Polici_4
Significant Accounting Policies - Reclassifications in Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassifications in Other Comprehensive Income/(Loss) | |||
Loss on derivatives | $ (3,632) | $ (3,622) | $ (5,137) |
Reclassification out of accumulated other comprehensive loss | |||
Reclassifications in Other Comprehensive Income/(Loss) | |||
Loss on derivatives | 3,632 | 3,622 | 5,137 |
Amortization of deferred realized losses on cash flow hedges | Reclassification out of accumulated other comprehensive loss | |||
Reclassifications in Other Comprehensive Income/(Loss) | |||
Loss on derivatives | $ 3,632 | $ 3,622 | 3,694 |
Accelerated amortization of deferred realized losses on cash flow hedges | Reclassification out of accumulated other comprehensive loss | |||
Reclassifications in Other Comprehensive Income/(Loss) | |||
Loss on derivatives | $ 1,443 |
Significant Accounting Polici_5
Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign Currency Translation: | |||
Foreign currency exchange gains/(losses) | $ (0.4) | $ (0.2) | $ (0.1) |
Significant Accounting Polici_6
Significant Accounting Policies - Cash (Details) $ in Thousands | 1 Months Ended | ||||
Jun. 30, 2018 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Cash and Cash Equivalents: | |||||
Cash and cash equivalents | $ 65,663 | $ 139,170 | $ 77,275 | $ 66,895 | |
The Export-Import Bank of Korea & ABN Amro | |||||
Restricted Cash: | |||||
Proportion of quarterly principal installments equal to the monthly deposit amount required for retention | 0.3333 | ||||
Proportion of semi-annual interest installments equal to the monthly deposit amount required for retention | 0.1667 |
Significant Accounting Polici_7
Significant Accounting Policies - Deferred Financing Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Expense | |||
Deferred finance costs and debt discounts | |||
Amortization of deferred financing costs and debt discounts | $ 16,800 | $ 16,900 | $ 15,000 |
Significant Accounting Polici_8
Significant Accounting Policies - Fixed Assets (Details) | 12 Months Ended |
Dec. 31, 2020item | |
Significant Accounting Policies | |
Number of vessels | 2 |
Sale And Lease Back Arrangement Term | 4 years |
Number of vessels acquired | 5 |
Significant Accounting Polici_9
Significant Accounting Policies - Depreciation (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Vessels | |
Depreciation | |
Estimated useful life from the year built | 30 years |
Significant Accounting Polic_10
Significant Accounting Policies - Accounting for Special Survey and Drydocking Costs (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Vessels | |
Accounting for Special Survey and Drydocking Costs | |
Deferral and amortization period of survey and drydocking costs | 2 years 6 months |
Significant Accounting Polic_11
Significant Accounting Policies - Pension and Retirement Benefit Obligations-Crew (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Vessels | Maximum | |
Pension and Retirement Benefit Obligations-Crew: | |
On board period of crew under the short-term contracts | 7 months |
Significant Accounting Polic_12
Significant Accounting Policies - Impairment of Long-lived Assets (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)item | |
Impairment of Long-lived Assets: | |||
Impairment loss | $ 210,715 | ||
Minimum | |||
Impairment of Long-lived Assets: | |||
Average historical period for estimating time charter equivalent rates | 5 years | 5 years | |
Maximum | |||
Impairment of Long-lived Assets: | |||
Average historical period for estimating time charter equivalent rates | 15 years | 15 years | |
Vessels | |||
Impairment of Long-lived Assets: | |||
Impairment loss | $ 0 | $ 0 | $ 210,700 |
Number of vessels on which impairment loss is recorded | item | 10 | ||
Vessels | Minimum | |||
Impairment of Long-lived Assets: | |||
Term of multi-year fixed rate period charters for vessels in current fleet and contracted vessels | 1 year | 1 year | |
Vessels | Maximum | |||
Impairment of Long-lived Assets: | |||
Term of multi-year fixed rate period charters for vessels in current fleet and contracted vessels | 18 years | 18 years |
Significant Accounting Polic_13
Significant Accounting Policies - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting: | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Significant Accounting Polic_14
Significant Accounting Policies - Equity Compensation Plan (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Aug. 02, 2019 |
Equity Compensation Plan: | ||
Maximum number of shares that may be granted | 1,000,000 | 1,000,000 |
Common Stock | ||
Equity Compensation Plan: | ||
Contractual obligation for any stock to be granted | $ 0 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash, Cash Equivalents and Restricted Cash | ||||
Cash and cash equivalents | $ 65,663 | $ 139,170 | $ 77,275 | $ 66,895 |
Restricted cash | 2,812 | |||
Total | $ 65,663 | $ 139,170 | $ 77,275 | $ 69,707 |
Fixed Assets, Net (Details)
Fixed Assets, Net (Details) $ in Thousands | May 12, 2020USD ($) | Jun. 30, 2020USD ($)item | Dec. 31, 2020USD ($)item$ / T | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) |
Fixed Assets, Net | ||||||
Impairment loss | $ 210,715 | |||||
Carrying value | $ 2,479,937 | $ 2,389,874 | 2,480,329 | $ 2,795,971 | ||
Instalments due by period ended: | ||||||
December 31, 2021 | 30,916 | |||||
December 31, 2022 | 30,915 | |||||
December 31, 2023 | 30,915 | |||||
Until May 2024 | 46,249 | |||||
Total leaseback instalments | 138,995 | |||||
Less: Imputed interest | (15,605) | |||||
Total leaseback obligation | 123,390 | |||||
Less: Deferred finance costs, net | (3,290) | |||||
Less: Current leaseback obligation | (24,515) | (16,342) | ||||
Leaseback obligation, net of current portion | 95,585 | 121,872 | ||||
Property, Plant and Equipment, Additions | 191,594 | 6,050 | 2,830 | |||
Citibank $114 mil. Facility | ||||||
Fixed Assets, Net | ||||||
Credit facility | 114,000 | |||||
Citibank $123.9 mil. Facility | ||||||
Fixed Assets, Net | ||||||
Credit facility | $ 123,900 | |||||
Niledutch Lion | ||||||
Fixed Assets, Net | ||||||
TEU | item | 8,626 | |||||
Phoebe | ||||||
Fixed Assets, Net | ||||||
TEU | item | 8,463 | |||||
Charleston (ex SM Charleston) | ||||||
Fixed Assets, Net | ||||||
TEU | item | 8,533 | |||||
CPO Bremen | ||||||
Fixed Assets, Net | ||||||
TEU | item | 9,012 | |||||
CPO Hamburg | ||||||
Fixed Assets, Net | ||||||
TEU | item | 9,012 | |||||
Vessels | ||||||
Fixed Assets, Net | ||||||
Impairment loss | $ 0 | 0 | $ 210,700 | |||
Number of vessels on which impairment loss is recorded | item | 10 | |||||
Number of vessels on which scrubbers installed | item | 9 | |||||
Cost of Scrubbers installed | $ 39,900 | |||||
Residual value of the fleet | $ 428,200 | 378,200 | ||||
Average life of scrap considered to calculate residual value of vessel, one | 10 years | |||||
Average life of scrap considered to calculate residual value of vessel, two | 5 years | |||||
Scrap value per ton (in dollars per ton) | $ / T | 300 | |||||
Carrying value | $ 271,300 | $ 271,900 | ||||
Instalments due by period ended: | ||||||
Property, Plant and Equipment, Additions | $ 141,900 | |||||
Hyundai Respect | ||||||
Fixed Assets, Net | ||||||
TEU | item | 13,100 | |||||
Hyundai Honour And Hyundai Respect | ||||||
Fixed Assets, Net | ||||||
Vessels to be refinanced | 139,100 | |||||
Sale and leaseback arrangement term (in years) | 4 years | |||||
Repurchase price | $ 36,000 | $ 52,600 | ||||
Net proceeds | $ 500 | $ 144,800 | ||||
Loan to fair value percentage | 120.00% | |||||
Minimum liquidity per vessels | $ 500 |
Fixed Assets, Net - Accumulated
Fixed Assets, Net - Accumulated Depreciation (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)item | |
Vessel Costs | |||
Balance at the beginning of the period | $ 3,230,303 | $ 3,224,253 | $ 3,559,161 |
Additions | 191,594 | 6,050 | 2,830 |
Impairment Loss | (337,738) | ||
Depreciation | 101,531 | 96,505 | 107,757 |
Balance at the end of the period | 3,421,897 | 3,230,303 | 3,224,253 |
Accumulated Depreciation | |||
Balance at the beginning of the period | (840,429) | (743,924) | (763,190) |
Impairment Loss | 127,023 | ||
Depreciation | (101,531) | (96,505) | (107,757) |
Balance at the end of the period | (941,960) | (840,429) | (743,924) |
Net Book Value | |||
Balance at the beginning of the period | 2,389,874 | 2,480,329 | 2,795,971 |
Additions | 191,594 | 6,050 | 2,830 |
Impairment loss | (210,715) | ||
Depreciation | (101,531) | (96,505) | (107,757) |
Balance at the end of the period | 2,479,937 | 2,389,874 | $ 2,480,329 |
Vessels | |||
Vessel Costs | |||
Additions | 141,900 | ||
Net Book Value | |||
Balance at the beginning of the period | 271,900 | ||
Balance at the end of the period | $ 271,300 | $ 271,900 | |
Other disclosures | |||
Number of vessels on which impairment loss is recorded | item | 10 |
Deferred Charges, Net (Details)
Deferred Charges, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in deferred charges, net | |||
Balance at the beginning of the period | $ 11,455 | ||
Balance at the end of the period | 17,339 | $ 11,455 | |
Drydocking and Special Survey Costs | |||
Changes in deferred charges, net | |||
Balance at the beginning of the period | 11,455 | 13,031 | $ 8,962 |
Additions | 16,916 | 7,157 | 13,306 |
Amortization | (11,032) | (8,733) | (9,237) |
Balance at the end of the period | $ 17,339 | $ 11,455 | $ 13,031 |
Period of amortization for deferred costs | 2 years 6 months |
Investments in affiliates (Deta
Investments in affiliates (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2019USD ($) | Aug. 31, 2015entity | Dec. 31, 2019USD ($) | Dec. 31, 2018 | Dec. 31, 2020USD ($)item | |
Gemini | |||||
Schedule of Equity Method Investments | |||||
Ownership (as a percent) | 49.00% | 49.00% | 49.00% | ||
Gemini | |||||
Schedule of Equity Method Investments | |||||
Finance lease obligations assumed | $ | $ 35.4 | ||||
Borrowings under a secured loan facility | $ | 30 | ||||
Proceeds from equity contributions | $ | $ 47.4 | ||||
Gemini | Suez Canal | |||||
Schedule of Equity Method Investments | |||||
TEU | 5,610 | ||||
Gemini | Genoa | |||||
Schedule of Equity Method Investments | |||||
TEU | 5,544 | ||||
Gemini | Catherine C | |||||
Schedule of Equity Method Investments | |||||
TEU | 6,422 | ||||
Gemini | Leo C | |||||
Schedule of Equity Method Investments | |||||
TEU | 6,422 | ||||
Gemini | Belita | |||||
Schedule of Equity Method Investments | |||||
TEU | 8,533 | ||||
Gemini | Entities that leases Suez Canal and Genoa | |||||
Schedule of Equity Method Investments | |||||
Acquired interest | 100.00% | ||||
Number of entities acquired | entity | 2 | ||||
Gemini | Owners of container vessels Catherine C and Leo C | |||||
Schedule of Equity Method Investments | |||||
Acquired interest | 100.00% | 100.00% | |||
Number of entities acquired | entity | 2 | ||||
Gemini | Equity Method Investment, Nonconsolidated Investee | |||||
Schedule of Equity Method Investments | |||||
Net assets | $ | $ 18.3 | $ 31.2 | |||
Virage | Gemini | |||||
Schedule of Equity Method Investments | |||||
Ownership (as a percent) | 51.00% |
Investments in affiliates - Equ
Investments in affiliates - Equity Accounted Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of financial information | ||||
Current assets | $ 118,448 | $ 190,386 | ||
Non-current assets | 2,595,932 | 2,492,633 | ||
Current liabilities | 239,685 | 223,080 | ||
Long-term liabilities | 1,439,118 | 1,578,249 | ||
Net operating revenues | 461,594 | 447,244 | $ 458,732 | |
Net income | 153,550 | $ 131,253 | $ (32,936) | |
Gemini | ||||
Summary of financial information | ||||
Ownership (as a percent) | 49.00% | 49.00% | 49.00% | |
Equity Method Investment, Nonconsolidated Investee | Gemini | ||||
Summary of financial information | ||||
Current assets | 11,524 | $ 6,242 | ||
Non-current assets | 69,149 | 69,740 | ||
Current liabilities | 7,585 | 9,892 | ||
Long-term liabilities | 41,920 | 47,795 | ||
Net operating revenues | 31,844 | 20,264 | $ 18,885 | |
Net income | $ 12,873 | $ 3,268 | $ 2,787 |
Other Non-current Assets (Detai
Other Non-current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 |
Other Non-current Assets | |||
Advances for vessels additions | $ 18,800 | ||
Advances for vessels acquisition | 2,507 | ||
Other assets | $ 20,421 | 29,577 | |
Total | 83,383 | 82,339 | |
ZIM notes | |||
Other Non-current Assets | |||
Available for sale securities | 43,559 | 20,078 | |
HMM notes | |||
Other Non-current Assets | |||
Available for sale securities | 19,328 | $ 11,377 | |
Equity participation | ZIM | |||
Other Non-current Assets | |||
Equity participation ZIM | $ 75 | $ 0 |
Other Non-current Assets - ZIM
Other Non-current Assets - ZIM (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020USD ($) | Jul. 31, 2014USD ($)item | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | |
Other Non-current Assets | ||||||
Impairment loss at reporting date | $ 210,715 | |||||
Acquisition of additional shares | $ 75 | |||||
Unearned revenue | 19,476 | $ 17,960 | ||||
Non-current portion of unearned revenue | 19,574 | 28,528 | ||||
ZIM | ||||||
Other Non-current Assets | ||||||
Equity participation (as a percent) | 10.20% | 7.40% | ||||
Acquisition of additional shares | $ 75 | |||||
Unearned revenue | 1,100 | 5,400 | ||||
Non-current portion of unearned revenue | $ 0 | 1,100 | ||||
Deferred revenue recorded | $ 39,100 | |||||
Ordinary shares owned | shares | 10,186,950 | |||||
Number of vessels of which the charter rates payable was reduced | item | 6 | |||||
Series 1 Notes | ZIM | ||||||
Other Non-current Assets | ||||||
Principal amount of unsecured notes received | $ 8,800 | |||||
Series 2 Notes | ZIM | ||||||
Other Non-current Assets | ||||||
Principal amount of unsecured notes received | $ 41,100 | |||||
Operating revenues | ZIM | ||||||
Other Non-current Assets | ||||||
Recognized unearned revenue | $ 5,400 | 6,000 | 6,000 | |||
Interest income | Notes | ZIM | ||||||
Other Non-current Assets | ||||||
Interest income from fair value unwinding | 1,800 | 1,600 | 1,400 | |||
Noncash interest income | $ 900 | $ 900 | $ 900 | |||
Equity participation | ZIM | ||||||
Other Non-current Assets | ||||||
Impairment loss at reporting date | $ 28,700 |
Other Non-current Assets - HMM
Other Non-current Assets - HMM (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 18, 2016 | |
Other Non-current Assets | |||||
Current portion of unearned revenue | $ 19,476 | $ 17,960 | |||
Non-current portion of unearned revenue | 19,574 | 28,528 | |||
HMM | |||||
Other Non-current Assets | |||||
Shares received from charter restructuring | 4.6 | ||||
Unearned revenue | $ 75,600 | ||||
Current portion of unearned revenue | 8,200 | 8,200 | |||
Non-current portion of unearned revenue | 18,900 | 27,000 | |||
Loan Notes 1 HMM | HMM | |||||
Other Non-current Assets | |||||
Principal amount of unsecured notes received | $ 32,800 | ||||
Loan Notes 2 HMM | HMM | |||||
Other Non-current Assets | |||||
Principal amount of unsecured notes received | $ 6,200 | ||||
Interest income | HMM | |||||
Other Non-current Assets | |||||
Interest income from fair value unwinding | 2,100 | 1,900 | $ 1,800 | ||
Operating revenues | HMM | |||||
Other Non-current Assets | |||||
Recognized unearned revenue | $ 8,200 | $ 8,200 | $ 8,800 |
Other Non-current Assets - Tran
Other Non-current Assets - Transfer to Available for sale category (Details) - USD ($) $ in Thousands | Mar. 28, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale securities at fair value and unrealized losses | ||||
Amortized cost basis | $ 74,478 | $ 69,679 | ||
Fair value | 62,887 | 31,455 | ||
Unrealized loss on available for sale securities | (11,591) | (38,224) | ||
Unrealized loss on available for sale securities | ||||
Beginning balance, Unrealized loss on available for sale securities | (38,224) | (36,378) | $ (26,607) | |
Unrealized gain (loss) on available for sale securities | (26,633) | (1,846) | (9,771) | |
Ending balance, Unrealized loss on available for sale securities | (11,591) | (38,224) | $ (36,378) | |
Straight-lining of company's revenue | 20,000 | 29,600 | ||
ZIM notes | ||||
Available for sale securities at fair value and unrealized losses | ||||
Amortized cost basis | 49,871 | 47,171 | ||
Fair value | 43,559 | 20,078 | ||
Unrealized loss on available for sale securities | (6,312) | (27,093) | ||
HMM notes | ||||
Available for sale securities at fair value and unrealized losses | ||||
Amortized cost basis | 24,607 | 22,508 | ||
Fair value | 19,328 | 11,377 | ||
Unrealized loss on available for sale securities | $ (5,279) | $ (11,131) | ||
Loan Notes 1 HMM | HMM | ||||
Other Non-current Assets | ||||
Principal amount of Loan Notes sold | $ 13,000 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities | ||
Accrued payroll | $ 1,008 | $ 809 |
Accrued interest | 2,137 | 3,910 |
Accrued dry-docking expenses | 2,177 | |
Accrued expenses | 5,638 | 3,808 |
Total | $ 10,960 | $ 8,527 |
Lease Arrangements (Details)
Lease Arrangements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)item | |
Lease Arrangements | |
Number of vessels , generated revenue results | item | 60 |
Future minimum revenue expected to be earned | |
2021 | $ 478,692 |
2022 | 310,499 |
2023 | 190,308 |
2024 | 57,070 |
2025 | 19,571 |
2026 and thereafter | 42,642 |
Total future rentals | $ 1,098,782 |
Long-Term Debt, net - Schedule
Long-Term Debt, net - Schedule of Debt (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Long-Term Debt, net | |||
Fair value of debt | $ (14,304) | $ (19,994) | |
Comprehensive Financing Plan exit fees accrued | 22,660 | 22,139 | |
Total long-term debt | 1,368,100 | 1,423,812 | |
Less: Deferred finance costs, net | (25,093) | (33,476) | |
Less: Current portion, net | (155,662) | (119,673) | |
Total long-term debt net of current portion and deferred finance cost | $ 1,187,345 | $ 1,270,663 | |
Number of vessels excluding sale and lease back arrangement | item | 58 | ||
Carrying value of vessels | $ 2,208,600 | ||
Remaining borrowing availability | $ 0 | ||
Weighted average interest rate on long-term borrowings (as a percent) | 4.60% | 6.10% | 4.30% |
Interest paid | $ 35,200 | $ 54,900 | $ 71,900 |
Interest cost incurred | 36,700 | 55,200 | $ 70,700 |
The Royal Bank of Scotland | |||
Long-Term Debt, net | |||
Long-term debt | 433,412 | 458,604 | |
Credit facility | 475,500 | ||
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank | |||
Long-Term Debt, net | |||
Long-term debt | 351,759 | 372,340 | |
Credit facility | 382,500 | ||
Citibank $114 mil. Facility | |||
Long-Term Debt, net | |||
Long-term debt | 63,061 | 74,402 | |
Credit facility | 114,000 | ||
Credit Suisse | |||
Long-Term Debt, net | |||
Long-term debt | 101,254 | 115,759 | |
Credit facility | 171,800 | ||
Citibank-Eurobank Credit Facility | |||
Long-Term Debt, net | |||
Long-term debt | 17,669 | 27,455 | |
Credit facility | 37,600 | ||
Club Facility | |||
Long-Term Debt, net | |||
Long-term debt | 124,427 | 143,389 | |
Credit facility | 206,200 | ||
Sinosure Cexim-Citibank-ABN Amro Credit Facility | |||
Long-Term Debt, net | |||
Long-term debt | 20,340 | 40,680 | |
Credit facility | 203,400 | ||
Citibank $123.9 mil. Facility | |||
Long-Term Debt, net | |||
Long-term debt | 85,280 | 88,793 | |
Credit facility | 123,900 | ||
Citibank $120 mil. Facility | |||
Long-Term Debt, net | |||
Long-term debt | 93,742 | $ 100,245 | |
Credit facility | 120,000 | ||
Macquarie Bank $58 mil. Facility | |||
Long-Term Debt, net | |||
Long-term debt | 56,000 | ||
Credit facility | 58,000 | ||
SinoPac $13.3 mil. Facility | |||
Long-Term Debt, net | |||
Long-term debt | 12,800 | ||
Credit facility | $ 13,300 |
Long-Term Debt, net - The Refin
Long-Term Debt, net - The Refinancing and the New Credit Facilities (Details) $ in Thousands | Dec. 11, 2020USD ($)item | Jul. 02, 2020USD ($)installment | Apr. 09, 2020item | May 02, 2019 | Aug. 10, 2018USD ($)shares | Sep. 30, 2020USD ($)installment | Dec. 31, 2019USD ($)shares | Dec. 31, 2020USD ($)installment | Apr. 08, 2020USD ($) |
Long-Term Debt, net | |||||||||
Debt refinanced | $ 2,200,000 | ||||||||
Number of shares issued upon refinancing of debt in exchange for debt reduction | shares | 7,095,877 | ||||||||
Percentage of shares issued to lender to outstanding stock | 47.50% | ||||||||
Debt reduction in refinancing agreement | $ 551,000 | ||||||||
Number of shares issued for one share under reverse stock split | 0.0714 | ||||||||
Cash contribution from largest stockholder upon refinancing of debt | $ 10,000 | ||||||||
Maturity extension term | 5 years | ||||||||
Minimum amount of equity investment commitment to source | $ 50,000 | ||||||||
Period to source investment commitment | 18 months | ||||||||
The Royal Bank of Scotland | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | $ 475,500 | ||||||||
Credit facility | 475,500 | ||||||||
Long-term debt | $ 458,604 | 433,412 | |||||||
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | 382,500 | ||||||||
Credit facility | 382,500 | ||||||||
Long-term debt | 372,340 | 351,759 | |||||||
Citibank | |||||||||
Long-Term Debt, net | |||||||||
Proceeds from credit facility | $ 325,900 | ||||||||
Citibank $114 mil. Facility | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | 114,000 | ||||||||
Credit facility | 114,000 | ||||||||
Long-term debt | 74,402 | 63,061 | |||||||
Credit Suisse | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | 171,800 | ||||||||
Credit facility | 171,800 | ||||||||
Long-term debt | 115,759 | 101,254 | |||||||
Citibank-Eurobank Credit Facility | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | 37,600 | ||||||||
Credit facility | 37,600 | ||||||||
Long-term debt | 27,455 | 17,669 | |||||||
Club Facility | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | 206,200 | ||||||||
Credit facility | 206,200 | ||||||||
Long-term debt | 143,389 | 124,427 | |||||||
Citibank $120 mil. Facility | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | 120,000 | ||||||||
Credit facility | 120,000 | ||||||||
Long-term debt | 100,245 | 93,742 | |||||||
Citibank $123.9 mil. Facility | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | 123,900 | ||||||||
Credit facility | 123,900 | ||||||||
Long-term debt | $ 88,793 | $ 85,280 | |||||||
Oceancarrier (No.2) Corp. Oceancarrier (No.3) Corp | LIBOR | |||||||||
Long-Term Debt, net | |||||||||
Spread on variable rate | 3.75% | ||||||||
Public Offering | |||||||||
Long-Term Debt, net | |||||||||
Number of shares sold | shares | 9,418,080 | ||||||||
Proceeds from equity issuance | $ 54,400 | ||||||||
New Credit Facilities | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | $ 1,600,000 | ||||||||
Number of shares sold | shares | 1,052,179 | ||||||||
Credit facility | $ 1,600,000 | ||||||||
New Credit Facilities | LIBOR | |||||||||
Long-Term Debt, net | |||||||||
Spread on variable rate | 2.50% | ||||||||
Macquarie Bank $58 mil. Facility | |||||||||
Long-Term Debt, net | |||||||||
Loan to fair value percentage | 65.00% | ||||||||
Minimum working capital requirement per vessel | $ 1,000 | ||||||||
Macquarie Bank $58 mil. Facility | Rewarding International Shipping Inc. and Blackwell Seaways Inc | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | $ 24,000 | ||||||||
Number of newly acquired vessels on whom loan was financed | item | 2 | ||||||||
Number of quarterly instalments | installment | 19 | ||||||||
Term of debt | 5 years | ||||||||
Balloon payment at maturity | $ 10,400 | ||||||||
Credit facility | $ 24,000 | ||||||||
Macquarie Bank $58 mil. Facility | Rewarding International Shipping Inc. and Blackwell Seaways Inc | LIBOR | |||||||||
Long-Term Debt, net | |||||||||
Spread on variable rate | 3.90% | ||||||||
Macquarie Bank $58 mil. Facility | Oceancarrier (No.2) Corp. Oceancarrier (No.3) Corp | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | $ 34,000 | ||||||||
Number of newly acquired vessels on whom loan was financed | item | 2 | ||||||||
Number of quarterly instalments | installment | 19 | ||||||||
Term of debt | 5 years | ||||||||
Balloon payment at maturity | $ 15,200 | ||||||||
Credit facility | $ 34,000 | ||||||||
SinoPac $13.3 mil. Facility | Oceancarrier (No.1) Corp | |||||||||
Long-Term Debt, net | |||||||||
Amount drawn | $ 13,300 | ||||||||
Number of quarterly instalments | installment | 19 | ||||||||
Period after the drawn down to start quarterly installments | 3 months | ||||||||
Term of debt | 5 years | ||||||||
Balloon payment at maturity | $ 3,800 | ||||||||
Loan to fair value percentage | 120.00% | ||||||||
Credit facility | $ 13,300 | ||||||||
SinoPac $13.3 mil. Facility | Oceancarrier (No.1) Corp | LIBOR | |||||||||
Long-Term Debt, net | |||||||||
Spread on variable rate | 3.75% |
Long-Term Debt, net - Interest
Long-Term Debt, net - Interest and Fees (Details) $ / shares in Units, $ in Thousands | May 02, 2019 | Aug. 10, 2018USD ($)$ / sharesshares | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Interest | |||||
Number of shares issued for one share under reverse stock split | 0.0714 | ||||
Fair value of common stock | $ 53,567 | $ 168,712 | |||
Amortization of finance costs | $ 11,657 | 10,795 | 11,771 | ||
Share price | $ / shares | $ 23.8 | ||||
Other long-term liabilities | |||||
Interest | |||||
Accrued amendment fee | $ 14,800 | ||||
New Credit Facilities | |||||
Interest | |||||
Floor rate (as a percent) | 0.00% | ||||
Number of credit facilities with PIK rate | item | 2 | ||||
PIK interest rate | 4.00% | ||||
Amount subject to additional PIK interest | $ 282,000 | ||||
Amendment fee | 69,200 | ||||
Amendment fee paid | 14,800 | $ 30,500 | 23,900 | ||
Deferred cash amendment fee | $ 18,100 | 17,200 | |||
Amortization of cash amendments fees | 52,000 | ||||
Issuance of common stock (in shares) | shares | 1,052,179 | ||||
Fair value of common stock | $ 25,000 | ||||
Deferred amendments fees | 18,100 | 17,200 | |||
Amortization of finance costs | $ 6,900 | ||||
Share price | $ / shares | $ 23.8 | ||||
Deferred professional fees | $ 11,700 | ||||
New Credit Facilities | Other income/(expenses), net | |||||
Interest | |||||
Professional fees related to refinancing discussions with lenders | $ 51,300 | ||||
New Credit Facilities | LIBOR | |||||
Interest | |||||
Margin percentage | 2.50% |
Long-Term Debt, net - Covenants
Long-Term Debt, net - Covenants, Events of Defaults, Collaterals and Guarantees (Details) $ in Millions | Dec. 31, 2020USD ($)item |
Hyundai Honour | |
Long-Term Debt, net | |
TEU | item | 13,100 |
Hyundai Respect | |
Long-Term Debt, net | |
TEU | item | 13,100 |
New Credit Facilities | |
Long-Term Debt, net | |
Minimum liquidity | $ 30 |
Minimum interest coverage ratio | 2.50 |
New Credit Facilities | December 31, 2018 | |
Long-Term Debt, net | |
Minimum collateral loan coverage on charter-free basis (as a percent) | 57.00% |
Minimum collateral loan coverage on charter-attached basis (as a percent) | 69.50% |
Maximum net leverage ratio | 7.50 |
Minimum consolidated market value adjusted net worth | $ 510 |
New Credit Facilities | September 30, 2023 and thereafter | |
Long-Term Debt, net | |
Minimum collateral loan coverage on charter-free basis (as a percent) | 100.00% |
Minimum collateral loan coverage on charter-attached basis (as a percent) | 100.00% |
Maximum net leverage ratio | 5.50 |
Minimum consolidated market value adjusted net worth | $ 60 |
Long-Term Debt, net - Exit Fee
Long-Term Debt, net - Exit Fee (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Exit Fee | ||
Exit fees accrued | $ 22,660 | $ 22,139 |
Aggregate exit fee payable | 24,000 | |
Long-term debt, net | ||
Exit Fee | ||
Exit fees accrued | $ 22,700 | $ 22,100 |
Long-Term Debt, net - Principal
Long-Term Debt, net - Principal Payments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Scheduled maturities of long-term debt | |
December 31, 2021 | $ 155,946 |
December 31, 2022 | 100,823 |
December 31, 2023 | 776,930 |
December 31, 2024 | 293,495 |
December 31, 2025 | 32,550 |
Total long-term debt | $ 1,359,744 |
New Credit Facilities | |
Long-Term Debt, net | |
Percentage of actual free cash flow equal to quarterly fixed and variable payment | 85.00% |
Fixed principal repayments | |
Scheduled maturities of long-term debt | |
December 31, 2021 | $ 132,003 |
December 31, 2022 | 100,823 |
December 31, 2023 | 83,594 |
December 31, 2024 | 6,400 |
December 31, 2025 | 3,200 |
Total long-term debt | 326,020 |
Variable principal repayments | |
Scheduled maturities of long-term debt | |
December 31, 2021 | 23,943 |
Total long-term debt | 23,943 |
Final payments | |
Scheduled maturities of long-term debt | |
December 31, 2023 | 693,336 |
December 31, 2024 | 287,095 |
December 31, 2025 | 29,350 |
Total long-term debt | $ 1,009,781 |
Long-Term Debt, net - Troubled
Long-Term Debt, net - Troubled Debt Restructuring (Details) $ / shares in Units, $ in Thousands | Oct. 12, 2020shares | May 02, 2019 | Aug. 10, 2018USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Troubled Debt Restructuring | |||||
Number of shares issued upon refinancing of debt in exchange for debt reduction | shares | 7,095,877 | ||||
Fair value of common stock | $ 53,567 | $ 168,712 | |||
Underlying stock price (in dollars per share) | $ / shares | $ 23.8 | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 0.0714 | ||||
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank | |||||
Troubled Debt Restructuring | |||||
Balance before refinancing | $ 639,200 | ||||
Reduction of debt in exchange for number of shares | $ 251,000 | ||||
Number of shares issued upon refinancing of debt in exchange for debt reduction | shares | 3,500,000 | ||||
Fair value of common stock | $ 83,900 | ||||
Concession granted | (167,100) | ||||
Accumulated accrued interest | $ 129,300 | ||||
Margin percentage | 2.34% | ||||
Balance after refinancing | $ 518,600 | ||||
Gross gain on debt extinguishment | 36,600 | ||||
New loan amendment fees | 9,500 | ||||
The Royal Bank of Scotland | |||||
Troubled Debt Restructuring | |||||
Balance before refinancing | 660,900 | ||||
Reduction of debt in exchange for number of shares | $ 179,200 | ||||
Number of shares issued upon refinancing of debt in exchange for debt reduction | shares | 2,500,000 | ||||
Fair value of common stock | $ 59,900 | ||||
Concession granted | (119,300) | ||||
Accumulated accrued interest | 119,300 | ||||
Deferred amendments fees | $ 9,300 | ||||
Shares repurchased | shares | 2,517,013 |
Long-Term Debt, net - Modificat
Long-Term Debt, net - Modification and Extinguishment Accounting (Details) - USD ($) $ in Thousands | Aug. 10, 2018 | Dec. 31, 2018 |
Credit Facilities Summary Table | ||
Gross gain on debt extinguishment | $ 116,365 | |
Other facilities | ||
Credit Facilities Summary Table | ||
Credit line extinguished by new credit facilities | $ 450,800 | |
Corporate cash payment of credit facilities | 12,000 | |
Gross gain on debt extinguishment | 89,300 | |
Credit Suisse | ||
Credit Facilities Summary Table | ||
Outstanding balance | 173,500 | |
Deferred amendments fees | 15,100 | |
New Club Facility | ||
Credit Facilities Summary Table | ||
Outstanding balance | 125,600 | |
Deferred amendments fees | 10,900 | |
Eurobank portion of the Citibank-Eurobank Facility | ||
Credit Facilities Summary Table | ||
Outstanding balance | 7,200 | |
Deferred amendments fees | 100 | |
Citibank | ||
Credit Facilities Summary Table | ||
Amount of cash flow | 152,900 | |
Fair value of refinanced debt | 448,200 | |
Total new fees | $ 49,500 | |
Risk adjusted market interest rate (as a percent) | 7.15% | |
Citibank - New Money | ||
Credit Facilities Summary Table | ||
Amount of cash flow | $ 325,900 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands, € in Millions | Aug. 10, 2018USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) |
Related Party Transactions | |||||||
Advances on account of the vessels' operating expenses | $ 20,426 | $ 20,512 | |||||
Recognized non-cash share-based compensation expense | 1,199 | 4,241 | $ 1,006 | ||||
Executive officers | |||||||
Related Party Transactions | |||||||
Recognized non-cash share-based compensation expense | $ 1,000 | 3,600 | 1,000 | ||||
Manager | |||||||
Related Party Transactions | |||||||
Daily management fees | $ 850 | ||||||
Daily vessel management fees for vessels on bareboat charter | 425 | ||||||
Daily vessel management fees for vessels on time charter | $ 850 | ||||||
Management fee on gross freight, charter hire, ballast bonus and demurrage (as a percent) | 1.25% | ||||||
Management fee based on the contract price of any vessel bought or sold (as a percent) | 0.50% | 0.50% | 0.50% | ||||
Amount capitalized | $ 700 | ||||||
Management fees incurred shown under General and administrative expenses | 17,700 | 16,800 | 16,800 | ||||
Management commissions incurred shown under Voyage expenses | 5,700 | 5,300 | 5,400 | ||||
Advances on account of the vessels' operating expenses | 20,400 | 20,500 | |||||
Executive officers compensation | € 1.5 | 1,800 | € 1.5 | 1,700 | € 2.7 | 3,200 | |
Cash bonuses | € 1.2 | 1,400 | € 1.2 | 1,400 | € 1.2 | 1,400 | |
Due to executive officers shown under accounts payable | 200 | ||||||
The Swedish Club | |||||||
Related Party Transactions | |||||||
Premiums paid | $ 4,300 | $ 4,400 | $ 3,900 |
Financial Instruments - Interes
Financial Instruments - Interest Rate Swap Hedges (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)agreement | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Financial Instruments | |||
Number of agreements held | agreement | 0 | ||
Interest rate swap hedges | |||
Financial Instruments | |||
Unrealized losses reclassified from accumulated other comprehensive loss to earnings | $ 3.6 | $ 3.6 | $ 3.7 |
Accelerated amortization of deferred realized losses | 0 | $ 0 | $ 1.4 |
Unrealized losses expected to be reclassified from accumulated other comprehensive loss to earnings within the next twelve months | $ 3.6 |
Financial Instruments - Estimat
Financial Instruments - Estimated Fair Values Of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Book Value | ||
Financial Instruments | ||
Cash and cash equivalents | $ 65,663 | $ 139,170 |
Long-term debt, including current portion | 1,368,100 | 1,423,812 |
Book Value | ZIM | Notes | ||
Financial Instruments | ||
Notes | 43,559 | 20,078 |
Book Value | HMM | Notes | ||
Financial Instruments | ||
Notes | 19,328 | 11,377 |
Fair Value | ||
Financial Instruments | ||
Cash and cash equivalents | 65,663 | 139,170 |
Long-term debt, including current portion | 1,368,100 | 1,423,812 |
Fair Value | ZIM | Notes | ||
Financial Instruments | ||
Notes | 43,559 | 20,078 |
Fair Value | HMM | Notes | ||
Financial Instruments | ||
Notes | $ 19,328 | $ 11,377 |
Financial Instruments - Financi
Financial Instruments - Financial Instruments Measured and Not Measured At Fair Value On Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments measured at fair value | ||
Deferred finance costs, net | $ 25,100 | $ 33,500 |
Fair Value | ||
Financial instruments measured at fair value | ||
Long-term debt, including current portion | 1,368,100 | 1,423,812 |
Non-recurring basis | Level II | ||
Financial instruments measured at fair value | ||
Long-term debt, including current portion | 1,368,100 | 1,423,812 |
Non-recurring basis | Fair Value | ||
Financial instruments measured at fair value | ||
Long-term debt, including current portion | 1,368,100 | 1,423,812 |
Notes | ZIM | Fair Value | ||
Financial instruments measured at fair value | ||
Notes | 43,559 | 20,078 |
Notes | ZIM | Recurring basis | Fair Value | ||
Financial instruments measured at fair value | ||
Notes | 43,559 | 20,078 |
Notes | ZIM | Recurring basis | Fair Value | Level II | ||
Financial instruments measured at fair value | ||
Notes | 43,559 | 20,078 |
Notes | HMM | Fair Value | ||
Financial instruments measured at fair value | ||
Notes | 19,328 | 11,377 |
Notes | HMM | Recurring basis | Fair Value | ||
Financial instruments measured at fair value | ||
Notes | 19,328 | 11,377 |
Notes | HMM | Recurring basis | Fair Value | Level II | ||
Financial instruments measured at fair value | ||
Notes | $ 19,328 | $ 11,377 |
Operating Revenue (Details)
Operating Revenue (Details) - Operating revenues - Significant customers | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CMA CGM | |||
Operating Revenue | |||
Percentage of operating revenue | 36.00% | 36.00% | 35.00% |
HMM Korea | |||
Operating Revenue | |||
Percentage of operating revenue | 24.00% | 24.00% | 24.00% |
YML | |||
Operating Revenue | |||
Percentage of operating revenue | 8.00% | 13.00% | 16.00% |
Operating Revenue by Geograph_3
Operating Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating revenue by geographic location | |||
Revenue | $ 461,594 | $ 447,244 | $ 458,732 |
Australia-Asia | |||
Operating revenue by geographic location | |||
Revenue | 203,991 | 222,328 | 255,476 |
Europe | |||
Operating revenue by geographic location | |||
Revenue | 242,704 | 211,312 | 196,880 |
America | |||
Operating revenue by geographic location | |||
Revenue | $ 14,899 | $ 13,604 | $ 6,376 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 01, 2016item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Hanjin | |||
Commitments and Contingencies | |||
Number of charters cancelled | item | 8 | ||
Collectability of receivables | Unsecured claim submitted to Seoul Central District Court against Hanjin Shipping | Pending litigation | |||
Commitments and Contingencies | |||
Total unsecured claim | $ | $ 597.9 | $ 597.9 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) $ in Thousands | May 10, 2019shares | Sep. 14, 2018shares | Dec. 31, 2020USD ($)directorshares | Dec. 31, 2019directorshares | Dec. 31, 2018director | Aug. 02, 2019shares |
Stock Based Compensation | ||||||
Shares issued and outstanding | 24,789,312 | |||||
Maximum number of shares that may be granted | 1,000,000 | 1,000,000 | ||||
Number of directors who elected to receive their compensation in shares | director | 0 | 0 | 0 | |||
Restricted stock | ||||||
Stock Based Compensation | ||||||
Shares issued and outstanding | 215,562 | 216,276 | ||||
Restricted stock | Vesting on December 31, 2019 | ||||||
Stock Based Compensation | ||||||
Vesting period | 15 months 15 days | |||||
Restricted stock | Vesting on December 31, 2021 | ||||||
Stock Based Compensation | ||||||
Vesting period | 39 months 15 days | |||||
Common Stock | ||||||
Stock Based Compensation | ||||||
Contractual obligation for any stock to be granted | $ | $ 0 | |||||
Manager's employees | Restricted stock | ||||||
Stock Based Compensation | ||||||
Shares granted | 137,944 | |||||
Number of cancelled shares | 4,168 | 714 | ||||
Manager's employees | Restricted stock | Vesting on December 31, 2019 | ||||||
Stock Based Compensation | ||||||
Shares vested | 66,888 | 149,386 | ||||
Manager's employees | Restricted stock | Vesting on December 31, 2021 | ||||||
Stock Based Compensation | ||||||
Shares vested | 66,174 | 149,388 | 66,174 | |||
Executive officers | Restricted stock | ||||||
Stock Based Compensation | ||||||
Shares granted | 35,714 | 298,774 | ||||
Shares granted before reverse stock split | 4,182,832 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | May 10, 2019shares | May 02, 2019shares | Sep. 14, 2018shares | Aug. 10, 2018USD ($)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Oct. 12, 2020USD ($)shares | Dec. 31, 2011$ / sharesshares | Sep. 18, 2009$ / sharesshares |
Stockholders' Equity | |||||||||||
Number of shares authorized to be repurchased | 4,339,271 | ||||||||||
Aggregate purchase price | $ | $ 31,100 | ||||||||||
Share issuance costs | $ | $ 873 | $ 169 | |||||||||
Number of shares issued for one share under reverse stock split | 0.0714 | ||||||||||
Common stock, shares outstanding before reverse stock split| shares | 213,324,455 | ||||||||||
Shares outstanding | 15,237,456 | 24,789,312 | 20,449,327 | 24,789,312 | |||||||
Agreed contribution from stockholder | $ | $ 10,000 | ||||||||||
Number of shares issued upon refinancing of debt in exchange for debt reduction | 7,095,877 | ||||||||||
Percentage of shares issued to lender to outstanding stock | 47.50% | ||||||||||
Shares issued and outstanding | 24,789,312 | 24,789,312 | |||||||||
Shares issued | 24,789,312 | 24,788,598 | 24,789,312 | ||||||||
Treasury shares | 4,339,271 | ||||||||||
Authorized capital stock, common stock (in shares) | 750,000,000 | 750,000,000 | 750,000,000 | 750,000,000 | |||||||
Authorized capital stock, par value of common stock (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Authorized capital stock, preferred stock (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||
Authorized capital stock, par value of preferred stock (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Minimum net cash proceeds from common stock offerings, as a condition for payment of cash dividends | $ | $ 50,000 | ||||||||||
Number of warrants issued to lenders | 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | |||||||
Exercise price of warrant (in dollars per share) | $ / shares | $ 7 | ||||||||||
Restricted stock | |||||||||||
Stockholders' Equity | |||||||||||
Shares issued and outstanding | 216,276 | 215,562 | 216,276 | ||||||||
Executive officers | Restricted stock | |||||||||||
Stockholders' Equity | |||||||||||
Shares granted | 35,714 | 298,774 | |||||||||
Manager's employees | Restricted stock | |||||||||||
Stockholders' Equity | |||||||||||
Shares granted | 137,944 | ||||||||||
Forfeiture of shares | 4,168 | 714 | |||||||||
Vesting on December 31, 2019 | Restricted stock | |||||||||||
Stockholders' Equity | |||||||||||
Vesting period | 15 months 15 days | ||||||||||
Vesting on December 31, 2019 | Manager's employees | Restricted stock | |||||||||||
Stockholders' Equity | |||||||||||
Shares vested | 66,888 | 149,386 | |||||||||
Vesting on December 31, 2021 | Restricted stock | |||||||||||
Stockholders' Equity | |||||||||||
Vesting period | 39 months 15 days | ||||||||||
Vesting on December 31, 2021 | Manager's employees | Restricted stock | |||||||||||
Stockholders' Equity | |||||||||||
Shares vested | 66,174 | 149,388 | 66,174 | ||||||||
DIL | |||||||||||
Stockholders' Equity | |||||||||||
Proceeds from equity issuance | $ | $ 17,300 | ||||||||||
Public Offering | |||||||||||
Stockholders' Equity | |||||||||||
Number of shares sold | 9,418,080 | ||||||||||
Proceeds from equity issuance | $ | $ 54,400 | ||||||||||
Share issuance costs | $ | $ 900 | ||||||||||
The Royal Bank of Scotland | |||||||||||
Stockholders' Equity | |||||||||||
Number of shares authorized to be repurchased | 2,517,013 | ||||||||||
Sphinx Investment Corp | |||||||||||
Stockholders' Equity | |||||||||||
Number of shares authorized to be repurchased | 1,822,258 |
Earnings_(Loss) per Share (Deta
Earnings/(Loss) per Share (Details) $ / shares in Units, $ in Thousands | May 02, 2019 | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2011shares |
Numerator: | |||||
Net income/(loss) | $ | $ 153,550 | $ 131,253 | $ (32,936) | ||
Denominator (number of shares in thousands): | |||||
Basic weighted average common shares outstanding | 23,588,994 | 15,834,913 | 10,622,839 | ||
Share based compensation | 216,000 | 386,000 | |||
Diluted weighted average common shares outstanding | 23,805,251 | 16,220,697 | 10,622,839 | ||
Number of warrants issued | 15,000,000 | 15,000,000 | 15,000,000 | ||
Number of warrants outstanding | 15,000,000 | 15,000,000 | |||
Basic and diluted earnings per share related to gain on extinguishment of debt | $ / shares | $ 10.95 | $ 116,400,000 | |||
Basic and diluted earnings per share related to gain on extinguishment of debt, before reverse stock split | $ / shares | $ 0.78 | ||||
Number of shares issued for one share under reverse stock split | 0.0714 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Feb. 12, 2021 | Jan. 20, 2021 | Feb. 26, 2021 | Feb. 11, 2021 | Feb. 04, 2021 | Jan. 27, 2021 | Dec. 31, 2020 | Aug. 10, 2018 |
Subsequent events | ||||||||
Book value of investment | $ 75 | |||||||
New Credit Facilities | ||||||||
Subsequent events | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,600,000 | |||||||
Subsequent event | ||||||||
Subsequent events | ||||||||
Sale leaseback arrangement amount | $ 135,000 | |||||||
Sale leaseback arrangement subject to customary closing conditions | $ 135,000 | |||||||
Partial payment received from Hanjin shipping | $ 3,900 | |||||||
Subsequent event | ZIM | ||||||||
Subsequent events | ||||||||
Ordinary shares owned | 10,186,950 | |||||||
Shareholding interest | $ 203,100 | |||||||
Subsequent event | Senior unsecured notes | ||||||||
Subsequent events | ||||||||
Face amount of debt | $ 300,000 | |||||||
Interest rate (as a percent) | 8.50% | |||||||
Subsequent event | Senior secured credit | ||||||||
Subsequent events | ||||||||
Refinancing amount | $ 1,250,000 | |||||||
Subsequent event | New Credit Facilities | Senior secured credit | ||||||||
Subsequent events | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 815,000 | |||||||
Credit facility subject to negotiation and entry into definitive documentation | $ 815,000 | |||||||
Subsequent event | Executive Officers and Independent Directors [Member] | ||||||||
Subsequent events | ||||||||
Number of shares granted | 110,000 | |||||||
Shares reserved for future issuance | 40,000 | |||||||
Vesting period | 3 years |