TOP Ships Inc. has agreed to take over nine eco medium range product/chemical tanker newbuildings, securing long-term charter employment and a potential gross revenue backlog of about $679m, according to the company.
The transaction covers nine 47,499 dwt MR vessels under construction at Guangzhou Shipyard International Company Limited, with deliveries scheduled for 2028 and 2029.
Control will be obtained through the acquisition of 100% of the issued shares of nine Marshall Islands special purpose companies that are counterparties to the shipbuilding contracts.
Effectiveness of the shipbuilding contracts is subject to the issuance of customary refund guarantees, while completion of the share acquisition depends on the conclusion of financing arrangements.
The special purpose companies are finalising lease financings with two Chinese leasing groups, including ABC Financial Leasing Co., Ltd. or its controlled entities, covering the majority of the contract price for all nine vessels.
Closing remains subject to customary conditions, including the provision of a corporate guarantee by TOP Ships.
Time charter employment has been secured for all vessels with a major oil trader from delivery for a firm seven-year period, with options to extend for up to four additional years.
Including optional periods, the total potential gross revenue backlog from the contracts is about $679m.
TOP Ships has agreed to acquire the shares of all nine special purpose companies for an aggregate consideration of about $41m. Due to the related-party nature of the acquisition, the transaction was approved by a special committee of independent board members, which obtained a fairness opinion from an independent financial adviser.
TOP Ships Inc. is an international owner and operator of ocean-going vessels focused on modern, fuel-efficient tanker tonnage engaged in the carriage of crude oil, refined petroleum products and bulk liquid chemicals.
Guangzhou Shipyard International Company Limited is a Chinese shipbuilder engaged in the construction of commercial vessels and specialised ship types for domestic and international owners.
