Top Ships – Rubico agree on construction of 10 MR tankers

In a move that combines a new fleet, Chinese financing and long-term charters, Top Ships Inc. and Rubico Inc., interests of Evangelos Pistiolis, have “locked in” the construction of 10 modern MR tankers.

Top Ships announced that it will acquire 100% of the shares in nine Marshall Islands special purpose vehicles (SPVs), which are linked to contracts for the construction of nine medium-range (MR) tankers, each with a capacity of 47,499 dwt, at the Chinese shipyard Guangzhou Shipyard International. The vessels are scheduled to be delivered in 2028 and 2029.

Due to the nature of the transaction as a related party transaction, the purchase of shares – totaling approximately 41 million dollars – was approved by a special committee of independent members of the board of directors, following the opinion of an independent financial advisor.

The SPVs are in the final stages of leasing agreements with two major Chinese leasing companies, including ABC Financial Leasing Co., Ltd., covering the majority of the contractual value of the vessels. The financings were arranged by Pistiolis and provide, among other things, for the provision of a corporate guarantee by Top Ships.

In addition, the nine tankers have already been committed to time charters with a major oil trading company, starting from the date of delivery. The contracts have a duration of seven years, with the possibility of extension for an additional four years, while the total potential gross revenue – including optional periods – is estimated at approximately 679 million dollars.