Greece-based tanker owner Top Ships has announced the successful completion of previously announced sale and leaseback (SLB) financing agreements for four of its tanker vessels. The gross proceeds from the refinancing, after the repayment of previous debt, amounted to about $27.2 million.
The agreements, closed with a major Chinese financier, cover the refinancing of two 300,000 DWT VLCC tankers, the Julius Caesar and Legio X Equestris; one 157,000 DWT Suezmax tanker, the Eco Oceano; and one 50,000 DWT MR product tanker, the Eco Marina Del Ray.
Evangelos J. Pistiolis, the President and CEO of the company, stated that the cash released, "approximates our current market capitalisation." He added that following the refinancings, the leverage of the fleet remains at a, "very conservative level of about 52 per cent."
Under the SLB terms, the vessels will be bareboat chartered back to Top Ships for ten years, with the exception of the Eco Marina Del Ray which is chartered for seven. The financing bears an interest rate of three-month term SOFR plus a 1.95 per cent margin, and the company has the option to buy back the vessels following the end of the first year.
Concurrently with entry into these SLBs, Top Ships also provided a guarantee for the obligations of Rubico under similar SLBs entered into with the same financier, in an aggregate amount of $84 million.