Danaos Corp is spending some of its huge profit to cut financial costs through a bond buy-back.

The New York-listed Greek container shipowner said it expects to repurchase $37.2m of its 8.5% unsecured senior notes due in 2028 in a privately negotiated transaction.

The $300m issue is trading at around $0.96, with an implied yield of 9.5% and a spread of 576 basis points, according to Norwegian investment bank Fearnley Securities.