Shippingtelegraph: Top Ships secures $207m financing for tanker quartet with Chinese financier

by Shipping Telegraph

Greece’s tanker shipowner Top Ships Inc. has entered into four sale and leaseback financing agreements for the refinancing of ships with a major Chinese financier.

In a securities and exchange commission filing, the New York-listed Top Ships together with its subsidiaries announced the refinancing of two 300,000-dwt VLCC tankers, the Julius Caesar and Legio X Equestris (expected to be concluded in October 2025), one 157,000-dwt suezmax tanker, the Eco Oceano CA (expected to be concluded in November 2025), and one 50,000-dwt MR product tanker, the Eco Marina Del Ray (expected to be concluded in November 2025).

The shipowner said the closing of these financing agreements is subject to conditions set forth in the relevant agreements.

The total proceeds from the VLCC/ Suez financing agreements and the MR financing agreement will amount to $207m, an estimated approximately $179.8m of which will be used to repay the four vessels’ existing financing facilities and the remaining balance will be used for general working capital purposes, Top Ships said in a SEC filing on August 19.

The VLCC/Suez financing deals have durations of ten years and provide continuous options, after the first year, to buy back the vessels at purchase prices stipulated in the agreements.

Under the terms of the VLCC / Suez financing agreements, the company will bareboat charter back the vessels for a period of ten years at bareboat hire rates of $3m per annum per VLCC vessel and of $2.2m per annum for the suezmax, plus interest based on Term SOFR plus a margin of 1.95% per annum.

As it is reported, at the end of the ten-year period, the company is obligated to buy back the vessels for $38.5m per vessel for the two VLCCs and $20m for the suezmax.

Meanwhile, the MR financing agreement has a duration of seven years and provides continuous options, after the first year, to buy back the vessel at purchase prices stipulated in the agreement.

Under the terms of the MR financing agreement, the company will bareboat charter back the vessel at bareboat hire rates of $2m per annum plus interest based on Term SOFR plus a margin of 1.95% per annum.

The Athens-based company said that it has an obligation to buy back the vessel for $13m at the end of the seven-year period. The MR financing agreement contains covenants similar to VLCC / Suez financing agreements.