TOP Ships to buy nine MR tankers for $41m

The tankers are 47,499 dwt each.

TOP Ships Inc. said it has agreed to acquire nine Marshall Islands special purpose vehicle companies from an entity affiliated with its Chief Executive Officer for about $41m.

The SPVs hold shipbuilding contracts for nine 47,499 dwt Medium Range (MR) product and chemical tankers under construction at Guangzhou Shipyard International Company Limited, with deliveries scheduled for 2028 and 2029.

The contracts are subject to customary refund guarantees, while the acquisition depends on the completion of lease financing arrangements.

The SPVs are finalising financing with two major Chinese leasing companies, including ABC Financial Leasing Co., Ltd., covering most of the vessels’ construction costs. The financings require customary closing conditions, including a corporate guarantee from TOP Ships.

All nine vessels have secured seven-year time charter contracts with a major oil trader upon delivery, with options to extend for up to four additional years.

The company said the potential gross revenue backlog from the charters could reach about $679 million, including optional periods.

The related-party transaction was approved by a special committee of independent directors, which obtained a fairness opinion from an independent financial advisor.